Private Equity News & Analysis

Ferranti Capital makes first ‘China outbound’ investment(2)

Ferranti Capital, a Chinese private equity firm, has made its first investment outside China of £5.75m and is raising a fund to be listed on AIM later this year.

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Ferranti Capital, a Chinese private equity group, is planning to list a fund on AIM, the London growth market, later this year after the firm has completed its first investment.

Renolds: the first of a £100m pipeline

Ferranti Capital was formed following a change in policy by the Chinese government, which means Chinese companies are now encouraged to expand their operations overseas. 

Ferranti Capital’s first acquisition is the machine tools division of UK engineering firm Renolds, for £5.75 million (€8.7 million; $11.3 million).

Renolds has two main operating subsidiaries, Jones & Shipman Precision, a precision grinding machines manufacturer, and Holroyd Precision, a gear cutting machine tools manufacturer, which are expected to generate more than £20 million in global sales this year.

Ferranti Capital believes its current pipeline of UK and other European investment opportunities is worth more than £100 million.
 
Ferranti will merge western European companies in the engineering, manufacturing and technology sectors with high-growth Chinese companies.