Partners Group has acquired a controlling interest in Shanghai-headquartered manufacturing company Suzhou Savera Shangwu Elevator Riding System – one of the largest China buyouts in 2014, according to the firm.
The firm did not disclose the financial details of the transaction, but the said the company has an enterprise value of $450 million, with some media reporting the deal was worth $325 million.
The deal is expected to close at the end of 2014 subject to regulatory approval.
Founded in Spain in 1967, Savera is a family-owned, global manufacturer of safety-critical elevator components. The firm started its first China factory in Beijing in 1999 and since developed its China business through acquisitions and the establishment of local joint-ventures in Suzhou, Tianjin, Guangzhou and Jiashan, with additional sites in Chongqing and Chengdu.
Today, the Company is headquartered in Shanghai and gets about 85 percent of its revenues from China, as well as serving other markets including Europe and India.
Partners Group is taking its stake from the founding family and long-term Chinese business partner and vice chairman of the business Cai Liansheng, who will retain a minority stake.
“We are excited as a firm to announce this transaction in China, a market we believe continues to offer attractive opportunities for investment,” Christoph Rubeli, co-chief executive and head of private equity direct investments at Partners Group, said in a statement.
“The Savera acquisition is a perfect fit with our relative value investment strategy of seeking out mid-market leaders and working with them to expand their business further. Savera is ideally positioned to benefit from the continued trend of urbanization in China and other developing countries, which provide robust support to the overall real estate construction sector,”
“Our value creation plan will involve expanding the company's geographical coverage, identifying suitable acquisition targets and operating partners, increasing R&D activity in China and optimising the company's organisational structure, corporate governance and business operations. Partners Group also looks forward to introducing the company to its global network of industry advisors and private equity investment partners,” Kelvin Yu, managing director and head of China at Partners Group, added.
Partners Group is a global private markets investment management firm with over €30 billion in investment programmes under management in private equity, private real estate, private infrastructure and private debt.