Baar, Switzerland-headquartered alternative investment firm Partners Group has agreed to acquire a controlling stake in elevator components maker Suzhou Savera Shangwu Elevator Riding System Co., Ltd., on behalf of its clients, according to a company announcement.
Deal terms were not disclosed. The deal has an overall enterprise value of over US$450 million,.
Partners Group is acquiring the stake in the company mainly from Savera’s founding family. The family and the company’s long-term Chinese business partner and vice chairman, Cai Liansheng, will retain a minority stake in the business.
Existing shareholders and key senior management will also remain with the business.
"We are excited as a firm to announce this transaction in China, a market we believe continues to offer attractive opportunities for investment," says Christoph Rubeli, co-CEO and head of private equity directs at Partners Group. "Savera is ideally positioned to benefit from the continued trend of urbanization in China and other developing countries, which provide robust support to the overall real estate construction sector."
The transaction is expected to close by the end of 2014, subject to certain closing conditions and government approvals.
Founded in Spain in 1967, Savera is a family-owned manufacturer of safety-critical elevator components including elevator guide rails, T-profiles and mechanical components.
Since establishing its first China factory in Beijing in 1999, Savera has continuously developed its China business through acquisitions and the establishment of local joint-ventures in Suzhou, Tianjin, Guangzhou and Jiashan, with additional sites in Chongqing and Chengdu.
Today, the Company is headquartered in Shanghai and derives approximately 85% of its revenues from China, while also serving other markets such as Europe and India.