Mid-market private equity firm CITIC Capital Partners has agreed to sell Saitama-headquartered company Polymatech to Japanese chemicals companies Sekisui Chemical and Inabata in a ¥20 billion ($180 million; €164 million) deal, according to a statement.
The sale marks a full exit for CITIC Capital, which bought Polymatech – a manufacturer of polymer parts for the electronics and automotive industries – in 2012 for an undisclosed sum.
The firm declined to disclose details on the returns.
During its almost five-year ownership, the firm implemented several changes alongside Polymatech’s management including setting a new company vision, devising new business strategies, and carrying out operational improvements such as reinforcing management control and growing the company’s access to international markets, the firm said.
Under CITIC Capital, Polymatech’s EBITDA grew from ¥300 million in FY2012 to ¥2.6 billion in FY2016, a source with knowledge of the matter told Private Equity International.
The deal is expected to be completed by end-August 2017.
In January this year, CITIC Capital held a final close of its third Japan buyout fund CITIC Capital Japan Partners III on its ¥30 billion hard-cap, beating its ¥25 billion target.
The fund secured commitments from sovereign wealth funds, financial institutions, pensions and funds of funds. Similar to its predecessor funds, Fund III will target Japanese consumer, healthcare, and industrial companies seeking to expand in China.