Axa-owned Novacap chemicals group makes China acquisition
AXA Private Equity-backed French chemicals group Novacap, is to acquire a majority stake in Taixing Yangzi Pharm Chemical (Yangzi), one of the leading Chinese producers of a chemical mainly used for the production of paracetamol. Financial terms of the transaction were not disclosed.
Yangzi is located in Taixing Economic Development Zone in Shanghai, and specializes in producing chemical intermediates for medicine. In 2011, Yangzi upgraded to a catalytic hydrogenation manufacturing process recognized as the industry benchmark. Its products are sold in China and exported to Japan, Southeast of Asia, Africa, Europe and North America.
It recorded EUR71 million ($94.8 million) of sales in 2012, according to a statement. The acquisition takes the Novacap group's annual total turnover up to EUR710 million, an increase of 50% in less than three years.
Novacap produces and sells mineral and organic chemical products to various sectors including glass manufacturing, chemicals, energy, pharmaceuticals, automotives and construction. The Yangzi acquisition represents the next step in Novacap's strategy to develop its health and pharmaceutical business.
AXA Private Equity acquired a majority stake in Novacap from Bain Capital in January 2011 in a deal that valued the company at EUR240 million. The company was spun out from specialty chemicals maker Rhodia by Bain in 2003.
Novacap operates nine industrial units located in France, China and Thailand. The deal increases the footprint of the group outside Europe, with around 50% of employees now located in Asia.
More on Europe
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.