CDIB Capital Asia Partners L.P Invests in Two Leading Companies, Huatong Industrial and Jiangyin TongliHong Kong, February 5, 2015
CDIB Capital Asia Partners L.P. ("CDIB Capital") is announcing that it has successfully led and closed two transactions: a US$25 million investment in Shane Global Holding Inc., which owns and operates Huatong Industrial Inc. ("Huatong"), and a US$30 million investment in Stonehenge Industrial Holdings Ltd., which owns and operates Jiangyin Tongli Optoelectronic Technology Limited ("Tongli"). Both companies share characteristics which attracted CDIB Capital: (i) leveraging on proprietary advanced manufacturing know-how, (ii) targeting fast growing and unfulfilled demand both domestically and internationally, (iii) benefitting from market leadership with strong barriers to entry, and (iv) generating strong free cash flows driven by high and expanding operating margins.
Founded in 1989, Huatong is a leading OEM/ODM of high-end upholstery furniture and home furnishings, based in Hangzhou, China. The company, with highly efficient customized manufacturing of industrial scale, has become a key supplier for mid-high end furniture retailers in the U.S. and Europe. Restoration Hardware and Pottery Barn are major customers of Huatong. CDIB Capital’s investment will be used for the expansion of production to service fast growing international demand for semi-bespoke premium upholstered furniture as well as entering the high end retail furniture market in China under its own brand. Victor Gao, Managing Director of CDIB Capital, will be joining the Board of Huatong.
Tongli was founded in 2001 and started its business as a manufacturer of polyethylene and polypropylene based film products, which are widely used in food, pharmaceutical and other soft plastic packaging. Over the past decade, Tongli has established itself as one of the largest and leading manufacturers of base films in China. In 2010, the company started to expand into the production of optical protective films, a higher margin product, to capitalize on the increasing demand for domestically manufactured optical protective films driven by the relocation of the fast growing flat panel manufacturing industry to China. CDIB Capital’s investment will allow the company to expand production capacity and fulfill the fast growing domestic demand for optical protective films as a substitute to overseas imports. Steven Wu, Senior Vice President of CDIB Capital, will be joining the Board of Tongli.
Lionel de Saint-Exupery, President & CEO of CDIB Capital, said "We are extremely pleased to have identified and closed those new landmark transactions. Both deals exemplify CDIB Capital’s "China-Plus" strategy. We look forward to working with both Huatong and Tongli as partners to keep building two outstanding businesses across markets and continue to drive value creation."