Clarity China, a Greater China-focused private equity fund manager, is investing C$20 million ($19 million; €13 million) in Montreal-headquartered Adaltis, a manufacturer of in vitro diagnostic systems, together with with FMRC Family Trust.
Clarity and FMRC will be investing $19 million and $1 million in the company respectively, to acquire convertible notes. If fully converted, the notes will translate into an equity interest of between 42.1 percent and 44.2 percent in the company. The total investment will be made in two tranches, following the first of which, Clarity China will nominate two members to the Adaltis’ board of directors. The transaction is subject to shareholder approval.
Toronto-listed Adaltis develops, manufactures and markets in vitro diagnostic systems and other medical products used to detect viral infections, to diagnose immune system diseases and to measure human hormone responses. The company has a manufacturing facility in Shanghai which manufactures products for the European market, and provides a platform to penetrate the growing in vitro diagnostic market in China, a market the company is particularly focused on.
Pierre Larochelle, president and chief executive officer of Adaltis, said in a statement that the company’s strategy is to focus on China and other emerging markets. “This transaction will further enhance Adaltis' ability to meet our clients' needs in China and on a global basis,” he said.
Clarity China invests in sectors such as energy, technology, aviation services, media, telecommunications, biotechnology, retail and financial services. The firm provides growth capital and also invests in mature businesses. It invests upwards of $10 million per transaction.
The firm is an affiliate of Clarity Partners, a Los Angeles-based private equity firm which manages assets of more than $1 billion. It has offices in Beijing, Shanghai and Los Angeles.
Clarity China did not respond to calls for comment by press time.