EQT Greater China sells Modern Metal

  • EQT Greater China sells Chinese leading aluminum die casting manufacturer Modern Metal
  • Modern Metal more than doubled plant capacity and sales during EQT Greater Chinas five years of ownership

EQT Greater China II (“EQT Greater China”) has sold its 30% share in Modern Metal & Precision Holdings Limited (“Modern Metal” or the “Company”), a leading aluminum die casting manufacturer in China, together with the founders who have sold 49% share, to JD Capital, one of the largest private equity firms in China.

Modern Metal is the market leader in high-pressure aluminum die-casting serving the global automotive, climate control, industrial automation and telecommunication industries. The Company offers comprehensive die-casting solutions including product and tool design, tooling fabrication, die-casting, precision CNC machining, surface finishing, and sub-assembly. Modern Metal has long-term relationships with over 100 global customers spanning across the US, Europe and Asia. The Company is headquartered in Hong Kong with manufacturing facilities in Dongguan and Wuzhou, China.

EQT Greater China invested in Modern Metal in December 2010 and has since then strengthened the corporate governance and leveraged EQT’s industrial experience to support management in strategic planning, marketing strategies, efficiency enhancement as well as quality improvement initiatives. During EQT Greater Chinas’s ownership, Modern Metal built a new plant in Wuzhou, China, gained higher share of sales from key automobile customers and formulated sharper go-to market strategy to capture the trend of increasing sourcing of aluminum die castings and auto parts from China. Modern Metal reported strong topline growth of 15% per year from FY2010 (ending March) to LTM Sep 2015.

Martin Mok, Partner at EQT Partners, Investment Advisor to EQT Greater China, says: “During the past five years, Modern Metal has added three key global automobile OEM customers, more than doubled its plant capacity and sales, and has become a larger and stronger player. We are grateful for the founder Mr Chau To FUNG's visionary leadership and the board member EQT Industrial Advisor Krister Mellvé's valuable insights and guidance, as well as the management team's relentless pursuit of excellence and business development.”

“EQT Greater China provided valuable resources and expertise which contributed to Modern Metal’s strong growth during the last few years. With EQT’s strong industrial experience and corporate governance model, Modern Metal has built a solid and sustainable foundation for the future growth,” states Mr Chau To FUNG, CEO and Chairman of Modern Metal.

The transaction was closed on June 6, 2016. The terms of the transaction were not disclosed.

Contacts:

Martin Mok, Partner at EQT Partners, Investment Advisor to EQT Greater China, +852 2971 5850

Kerstin Danasten, EQT press contact +46 8 506 55 334

About EQT

EQT is a leading global private equity group in Europe with approximately EUR 30 billion in raised capital. EQT has portfolio companies in Europe, Asia and the US with total sales of more than EUR 15 billion and approximately 100,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

For further information, please visit www.eqt.se  

About Modern Metal

Modern Metal is the market leader in high-pressure aluminum die-casting serving the global automotive, climate control, industrial automation and telecommunication industries. The Company offers comprehensive die-casting solutions including product and tool design, tooling fabrication, die-casting, precision CNC machining, surface finishing, and sub-assembly. The Company has long-term relationships with over 100 global customers spanning across the US, Europe and Asia. The Company is headquartered in Hong Kong with manufacturing facilities in Dongguan and Wuzhou, China.

For further information, please visit www.hkmmr.hk

About JD Capital

JD Capital is one of the largest private equity firms in China with over 240 investments in a number of industries including advanced industrial manufacturing, consumer products and services, pharmaceutical and healthcare, agriculture, natural resources and mining, and clean tech. JD Capital is headquartered in Beijing, China.

For further information, please visit www.jdcapital.com  

About Us

EQT is a leading global private equity group headquartered in Stockholm, with approximately EUR 30 billion in raised capital. EQT has portfolio companies in Europe, Asia and the US with total sales of more than EUR 15 billion and approximately 100,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

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