Infinity Group, a specialist in cross border China, RMB and dollar private equity funds, has led a USD14.3m investment in THT Heat Transfer Technology at a pre-money valuation of USD51.2m (USD3.20 per share), with an investment of USD9.0m.
MC Capital, Zhejiang Jinqiao and other investors also participated in the securities purchase agreement, which THT entered into on 2 November 2010.
Headquartered in Jilin Province, China, THT designs, manufactures and sells plate heat exchangers, shell-and-tube heat exchangers, heat exchanger units and other heat exchanger products. THT’s products focus on energy conservation, carbon emission reduction and other environmentally friendly applications.
THT has completed more than 3,000 projects collectively for both domestic and international customers, including BP, BASF, Sinopec, LG as well as the Beijing 2008 Olympics.
The proceeds from this transaction will be used to invest in a new air-cooled heat exchanger factory in Tianjin as well as pressing machines for nuclear power plant products.
The remaining funds will be used to support working capital needs, including the expansion of production capacity, the promotion of future business development and the support of new product development.
"Infinity Group decided to invest in THT for several reasons. Among them, THT has a diversified product portfolio with proven quality, integrated production, and customised and innovative products. In addition, and of particular relevance, THT’s future strategy includes tapping the air-cooled heat exchanger market and nuclear market. Towards this goal, the company has shown interest in one of Infinity Groups’ defined sectors of focus, that is, Israeli water clean technology and energy in the areas of desalination, water-savings technology in agriculture and processing technology," says Ariel Poppel, managing director of finance at Infinity Group.
THT’s chairman and chief executive officer Guohong Zhao adds "We are pleased to welcome Infinity Group as our lead investor and appreciate the efforts of our investors and financial adviser Halter Financial Group. Through this transaction THT will benefit not only from the fresh capital that will help fuel business expansion, but also from Infinity’s international technology transfer platform and extensive geographic footprint throughout China."
