Citic Capital Partners, the private equity arm of Citic Capital Holdings, announced that its China buyout fund has completed the acquisition of a 33% stake in leading pallet and other returnable packaging pooling solution provider China Merchants Loscam from Sinotrans.
This is the fifth carve-out deals CITIC Capital has completed in the last two years (Note 1).
The sale is part of Sinotrans’ ongoing efforts to implement its strategy of focusing core business. Following the transaction, Sinotrans will hold 45% of Loscam, while the other investor will hold 22% of the Company.
Established in 1942 and operating in 12 countries throughout Asia Pacific, Loscam engages in the leasing and pooling of pallet and other returnable packaging equipment and helps to modernize retail and manufacturing supply chains to minimize the handling of products as they move through the logistics flow.
Loscam is dedicated to delivering high-quality, innovative and environmentally sustainable solutions and fit-for-purpose systems and procedures to the local markets. Loscam has been a trusted brand for pooling and returnable packaging solutions used in supply chains and has leading market position in Australia, New Zealand, Southeast Asia and Greater China.
Citic Capital chairman and CEO Yichen ZHANG said: “We are excited about the opportunity to invest in Loscam and work closely with the exceptional management team who has built a solid footprint in Asia Pacific. China is one of the fast-growing markets, and leasing propensity and pooling model are still relatively new compared with other developed markets.
“We see huge growth potential in China with adoption of pooling model to improve supply chain efficiency and standardization. We look forward to leveraging CITIC Capital’s unique resources in supporting the team.”
Latham & Watkins served as legal counsel to CITIC Capital.
Source: Company Press Release