Capitalising on Europe’s distress and growth in the Chinese market, Cathay Capital has today bought French fine chemicals manufacturer Minafin with plans to expand Eastwards, according to the firm.
The value of the deal was undisclosed, however Minafin has grown through acquisitions since its inception in 2005 and its four manufacturing sites have a total revenue of €120 million.
The business’ focuses are fine chemicals, advanced cosmetology, pharmaceutical intermediates and active pharmaceutical ingredients. With China’s massive active pharmaceutical ingredients market, expanding into this region corresponds with Minafin’s ambitious growth plans.
Cathay is currently investing from its second fund of €125 million, which held a first close in May this year. Following Minafin, it has made three investments so far from the fund. The firm has just under €200 million assets under management with 20 portfolio companies based in China or France.
The firm’s strategy is to invest in growing and profitable businesses in China and Western countries and use its cross-border experience to expand the companies into either region. As Europe offers an increasingly troubled business market, firms who have easy access to China and Europe could be hugely advantaged when both European countries move into Asia, or Chinese business into the West.
Cathay could not be reached for comment by press time.