Standard Chartered PE leads Chinese spa buyout

The transaction is the second since the firm dismissed its head of private equity Joseph Stevens amid plans to reduce its exposure to the asset class.

Standard Chartered Private Equity (SCPE), the private equity arm of Standard Chartered Bank, has led a consortium of investors to acquire a majority stake in Shanghai Siyanli Industrial Company, a health and beauty chain headquartered in Shanghai, according to a statement.

SCPE declined to disclose financial details of its investment and co-investors in the deal. SCPE previously owned an undisclosed interest in the company.

Siyanli’s valuation now stands at $224 million and the capital injected in the deal will be used to accelerate the company’s expansion plans to further enhance its market leadership position in China, according to the statement.

Following the transaction, the firm’s managing director Zhu Wei will become chairman of Siyanli.

“We are privileged to partner with Siyanli and its management team, who are determined to continue building a successful beauty care brand that caters to the future needs of China customers. We look forward to supporting the team to accelerate its growth and presence in China,”, Wei said in a statement.

Founded in 1996 Siyanli is a high-end beauty care provider which operates 160 centres across China.

Since inception in 2002 SCPE, which makes investments through the bank’s balance sheet, has invested over $6 billion in more than 100 companies whose principal operations and management are located in Asia, Africa or the Middle East.

The firm’s recent deals in Asia include a $40 million investment in Ho Chi Minh City-based children’s lifestyle platform N Kid, $28 million into Vietnamese mobile payments provider M_Service, $17 million into Indian financial services firm IFMR Capital, and an undisclosed stake in Singapore-based food company Phoon Huat.

In November 2016, SCPE appointed Nainesh Jaisingh as head of private equity, after dismissing former head of private equity Joseph Stevens and head of private equity for the ASEAN region Bert Kwan for undisclosed reasons. The firm is also currently in the process of reducing and streamlining its private equity business, as previously reported by Private Equity International.