A Capital tunes in to Bang and Olufsen

Euro-China growth capital firm A Capital has teamed up with a luxury goods distributor in China, to invest in European electronics giant Bang and Olufsen.

A Capital has partnered with Sparkle Roll, the China-based luxury goods distributor, to invest DKK 182 Million ($30 million; €24 million) in Bang and Olufsen for a 7.7 percent stake. 

The firm aims to utilise its European experience in tandem with Sparkle Roll’s luxury marketing and distribution abilities in China to grow Bang and Olufsen’s Asian presence.

Sparkle Roll currently distributes luxury cars, including Bentley, Lamborghini and Rolls Royce, and other luxury items to shopping malls in major Chinese cities.

As part of the deal A Capital’s chairman and managing partner, André Loesekrug-Pietri, will sit on the company’s board of directors. 

“I’m on the board to make sure that China is up for discussions for the company as a whole”, he told Private Equity International. “We wanted to make sure the partnership is a success and so somebody who has strong skin in the game like us works on the relationship between all parties on a daily basis.”

The deal, initiated by A Capital, was the second from its euro fund which reached an undisclosed first close in May but has a target of €250 million. 

A Capital invests in European companies with revenues between €100 million and €5 billion with strong growth potential in China. 

The firm says it is unique in partnering with strategic Chinese co-investors. Cornerstone investors include the Chinese sovereign wealth fund China Investment Corporation (CIC) as well as the Belgian Holding SFPI.