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Bain Capital acquires Asimco Technologies from Key Principal consortium

Bain Capital has completed the acquisition of Asimco Technologies and its 11 wholly owned and joint venture companies in China from Key Principal Partners and co-investors.

Financial terms of the private transaction were not disclosed.

Asimco is the largest independent producer of diesel engine components in China. It supplies products to the commercial vehicle and passenger car markets in China and globally.

“With its global footprint and value-added investment approach, Bain Capital is the ideal partner for Asimco as we plan to introduce new higher value, eco-friendly products and expand our market leadership,” says Gary Riley, chief executive of Asimco. “I am confident that our common vision and commitment to customers, employees and partners will enhance Asimco’s ability to meet and exceed the growth and technology requirements of our customers over the next decade.”

“KPP is proud of the development of Asimco since we acquired the business in 2004,” says Leland Lewis, a managing partner of KPP. “From 2005 through today, revenues increased 140 per cent, while earnings (Ebitda) increased more than three-fold. The development of the business has been more dramatic in the past two years with revenues increasing by 28 per cent since 2008, while earnings have more than doubled again. We are pleased that a global investment firm like Bain Capital will continue the Asimco legacy and lead it to new heights. We also wish to thank the employees and management of Asimco for making it a successful investment for KPP and its other investors.”

KPP will retain its ownership stake in Asimco Nanyue, the fuel system business based in Hunan Province.

“Bain Capital shares the vision and values that have made Asimco a success in China, and we are very excited to begin working with management to help the company capitalise on its unique position in the marketplace,” adds Jonathan Zhu, a managing director of Bain Capital. “We look forward to leveraging our extensive operations expertise to help Asimco take advantage of its strong market positions to further increase share in the key segments of the commercial vehicle, passenger car and international business it serves.”

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