Trade Sale of the Year – Beijing Leader & Harvest

Affinity Equity Partners and Unitas Capital's $650 million sale of Beijing Leader & Harvest Electric Technologies to Schneider Electric in June is therefore the exception that proves the rule.

"It shows that buyouts are possible in China and that trade sales can be done," Affinity's Queenie Ho said. "The private equity model that appears to work everywhere else does work in China as well."

Beijing Leader develops medium-voltage variable frequency drives for use in fans and pumps. Affinity and Unitas jointly acquired 94% of the company in October 2009, paying $200 million. Two months later, Affinity sold a 23% stake to Unitas keeping a residual 71% stake. During their tenure it saw annual growth in excess of 20%. The firms' intention to exit came to light in March of this year. Potential bidders were said to include global energy players Emerson Electric, Siemens, Schneider Electric and ABB. Schneider eventually won out.

The exit exhibited the quintessential elements that define PE in the world's more mature markets, and sets the bar for what can be done in China. Most importantly, the deal was profitable, with Affinity and Unitas realizing a 3x return on their initial investment within two years.

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• Topics
• Exits
• Greater China
• Trade sale
• Affinity Equity Partners
• Unitas Capital
• Exit
• China