AGIC Capital strikes second European deal

The Hong Kong-headquartered firm has acquired a large majority stake in Italian manufacturer Gimatic.

Asia Germany Industrial Promotion Capital (AGIC), the European-Asian firm started in 2015 by ex-Deutsche Bank executive chairman Henry Cai, has made its second investment from its debut fund in Italy-based tools manufacturer Gimatic.

The investment in Gimatic was made through AGIC’s Fund I, which was launched in March 2015 and has a target size of $1 billion. It held a first close of $550 million in August last year and is on target to achieve a second close in the third quarter of 2016, the firm said in a statement. China’s sovereign wealth fund China Investment Corporation is an anchor investor in AGIC Capital.

The total enterprise value of the transaction is above €100 million. Italian mid-market private equity firm Xenon Private Equity and Gimatic’s chief executive and founder Giuseppe Bellandi will also invest substantial minority stakes.

Gimatic develops and manufactures advanced pneumatic and mechatronic handling components and solutions for leading international blue-chip end customers and tier one suppliers in the automotive, plastics, electronics, food and pharmaceuticals industries. The company has secured more than 100 patents.

AGIC invests in small and medium-sized companies in Europe that want to realise their growth potential and expansion plans in Asia, focusing on companies that specialise in intelligent manufacturing, high-end equipment, advanced materials, medical technologies and environmental protection technologies. Typical investments range between €25 million to €150 million. 

AGIC’s investment will be used to increase the company’s penetration in Asia, the world’s fastest growing robotics and automation market according to market research report Industrial Robotics Market, Global Forecast to 2022.

In January this year, AGIC bought German machinery manufacturer KraussMaffei Group, together with China’s largest chemicals group China National Chemical Corporation (ChemChina) and infrastructure development company Guoxin International Investment Corporation, for €925 million from Canadian private equity firm Onex. The sale generated a return multiple of 2.1x for Onex and net proceeds of €664 million, it said on its website.

AGIC has offices in Munich, Beijing, Shanghai and Hong Kong. It was founded last year by former Deutsche Bank executive chairman for corporate finance for Asia-Pacific Henry Cai, known for advising Chinese state-owned enterprises in their overseas listing, including those of Tsingtao Brewery and China Pacific Insurance Group.

The transaction is subject to regulatory approvals and is expected to close by the end of June 2016.