A Hong Kong-based private equity fund is making its first acquisition in the United States.
AGIC Capital, a US$1 billion fund co-founded in 2015 by veteran China banker Henry Cai, said it will acquire The Ritedose Corporation, a pharmaceutical firm based in a Columbia, South Carolina, from US private equity firm Olympus Partners in a deal worth between US$600 million and US$800 million, including debt, the Wall Street Journal reports.
Chinese pharmaceutical company Humanwell Healthcare (Group) Co. will take a minority position, AGIC said.
Cai gained fame for arranging some of the first listings of private Chinese companies in Hong Kong, including Tsingtao Brewery Co. Ltd. (00168.HK) in 1993, the Journal said.
He used to work at Deutsche Bank AG and UBS Group AG before setting up AGIC with partners in Germany. One of AGIC’s investors is Chinese sovereign wealth fund China Investment Corp.
Last year AGIC agreed to buy Germany’s KraussMaffei Group, a maker of equipment that processes plastics and rubber, for US$1 billion.
Sam Sun, the fund’s head of Greater China, said the Ritedose deal will be funded by a mixture of debt and equity, with debt financing from a US lender and equity largely in US dollars, plus a small portion in cash from mainland China, the newspaper said.
Ritedose specializes in a manufacturing process for liquid-filled containers that is known for lessening the likelihood of accidental contamination.
The demand for such technology is increasing in China and Japan, Sun said.
AGIC’s investment will be used in developing new products and increasing capacity, Ritedose chief executive Umesh Dalvi was quoted as saying in a press statement.
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