Dec 04, 2018 (China Knowledge) - CITIC Capital Japan Partners III, a Japan buyout fund managed by the private equity arm of CITIC Capital has completed the acquisition of the entire stake in Nippon Oil Pump (NOP) Co., Ltd. The value of the deal is reported to be around USD 97 million and values NOP at roughly 11 times its adjusted EBITDA.
Nippon Oil Pump is a leading manufacturer of internal gear pumps and provides high-quality and high-performance products and solutions across a wide-range of end markets such as machine tools, construction vehicles, general machinery, food and beverage dispensing, power infrastructure and marine & ship equipment.
NOP has also come up with two new initiatives to promote rapid growth and expansion in overseas markets. Firstly, its newly invented product series, the NOP Coolant Unit, has helped its users to cut down on space, energy and maintenance cost of machine tools. Its products are seeing increasing usage not only in Japan, but overseas markets such as China, South Korea, India and Europe.
Next, the company has also acquired German coolant unit system manufacturer Streamware-Components OHG and has successfully integrated its product range to penetrate the European and Japanese machine tools markets.
With the acquisition, CITIC Capital will be capitalizing on its extensive network and resources throughout China and Asia to further support NOP’s growth in these markets. CITIC Capital expects a growing demand for NOP’s products in China which will be largely driven by the country’s “Made in China 2025” plan as the country shifts its focus towards high-tech equipment.
Founded in 2002, CITIC Capital is one of the largest alternative investment management and advisory firms in China. CITIC manages more than USD 25 billion of capital across 100 funds and investment products in the sectors of private equity, real estate, structured investment & finance, and asset management through its multi-asset class platform. CITIC Capital has over 160 portfolio companies that span 11 sectors and employ over 830,000 people around the world.
CITIC Capital’s private equity arm, CITIC Capital Partners focuses on buyout opportunities worldwide and has completed more than 60 investments in China, Japan, the U.S. and Europe. CITIC Capital Partners currently has USD 6 billion of committed capital under management.
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