Shaw Kwei invests $40m in German manufacturer

The pan-Asian private equity firm made the investment through a convertible bond

Pan-Asian private equity investor Shaw Kwei & Partners has invested $40 million in SCHMID Group through a convertible bond, according to a joint statement from the two firms.

Shaw Kwei, which has offices in Hong Kong and Singapore, has invested in the family-owned company, which has been continuously operating for 150 years, with capital from its third fund, Asia Value Investment Fund III, a 2010-vintage vehicle with around $450 million of commitments.

SCHMID plans to use the investment to expand its business in Germany and China to meet rising customer orders.

“This is Shaw Kwei & Partners’ second investment with a German Mittelstand company and we are keen to help promote and expand SCHMID Group’s growth in Asia,” Shaw Kwei founder and managing director Kyle Shaw said.

SCHMID, which has design and production facilities in Germany, China, Switzerland and the US and sales offices around the world, designs and manufactures capital equipment, fully-integrated lines and facilities for the production of printed circuit boards, products related to solar power, flat panel displays, factory automation, medical and pharmaceutical related equipment, and energy storage systems.

Earlier this month Shaw Kwei invested $17 million in marine logistics firm Amos International Holdings, taking a 60 percent ownership stake. In 2012 the firm completed two take-privates, acquiring Beyonics Technology for $110 million in February and China-based CHT, one of the largest global PVC adhesive tape manufacturers, for $49 million in March, PEI reported at the time.