CITIC Capital Holdings Ltd. has invested around EUR72 million (US$82.5 million) in Formel D, a Germany-based global service provider to the automotive and component supply industry.
CITIC is investing in partnership to 3i Group, a multinational private equity and venture capital company based in London, which is investing EUR155 million (US$178 million) in Formel D, according to a company announcement.
The deal will give CITIC and 3i a controlling stake in Formel D, and together they will support Formel D’s international growth and expansion in Asia.
The deal was completed via CITIC Capital China Partners III, L.P., a buyout fund managed by CITIC Capital Partners, the private equity arm of CITIC Capital.
“The investment in Formel D is our first deal in Germany. We are happy to partner with the renowned investor 3i and are looking forward to jointly supporting the successful growth of Formel D. We are committed to adding significant value to the company’s development, in particular by using our expertise and network in Asia,” said Boon Chew, senior managing director of CITIC Capital.
Last month, CITIC Capital Partners closed its third China-focused fund at a US$1.57 billion hard cap. The fund will look at buyouts in China and cross-border deals with a China angle.
The fund previously teamed up with Hubei province-based Humanwell Healthcare Group Co., Ltd. to acquire Australia stock exchange-listed Ansell Ltd’s condom division, the world’s second biggest condom maker, for US$600 million, this May.
Founded in 1993, Formel D provides services along the entire automotive value chain. It currently operates in 19 countries worldwide, including the U.S., China, U.K. and Canada. The company claims that it is growing at an average of 17% per annual. Last year, it recorded revenue of EUR255 million (US$293 million).
It plans to use the latest proceeds to expand its client base in Asia, and increase its value added services such as vehicle test specification and virtual testing.
Source: China Money Network
