CITIC Capital Holdings Ltd said July 17 that it has invested in Formel D. CITIC’s investment was about 72 million euro ($82.5 million). Formel D, of Troisdorf, Germany, is a global service provider to the automotive and component supply industry. Harris Williams & Co served as financial advisor and Shearman & Sterling LLP served as legal counsel to CITIC Capital. Baird served as financial advisor and Willkie Farr & Gallagher LLP served as legal counsel to 3i.
Correction: A prior version of this story incorrectly stated that 3i is selling its stake in Formel D. It is not. CITIC will be an investment partner to 3i in Formel D. The story has been corrected.
(Hong Kong, 17 July 2017) CITIC Capital China Partners III, L.P., a buyout fund managed by the private equity arm of CITIC Capital Holdings Limited (“CITIC Capital”), is pleased to announce it has partnered with 3i Group plc (“3i”) to acquire Formel D, a global service provider to the automotive and component supply industry on 13 July 2017. CITIC Capital’s investment amounted to approximately EUR72 million.
Formel D has a strong track record and has outperformed the market over the last 10 years. Growing at an average of 17% p.a., Formel D differentiates itself through its global scale, premium customer relationships and comprehensive service offering: it is the only player offering quality services along the entire automotive value chain. CITIC Capital and 3i plan to support Formel D’s international growth by rolling out its existing services to clients in other geographies, expanding its client base in Asia, and increasing its higher “value add” services such as vehicle test specification and virtual testing.
Boon CHEW, Senior Managing Director of CITIC Capital, commented: “The investment in Formel D is our first deal in Germany. We are happy to partner with the renowned investor 3i and are looking forward to jointly supporting the successful growth of Formel D. We are committed to adding significant value to the company’s development, in particular by using our expertise and network in Asia.” Harris Williams & Co. served as financial advisor and Shearman & Sterling LLP served as legal counsel to CITIC Capital. Baird served as financial advisor and Willkie Farr & Gallagher LLP served as legal counsel to 3i.
About Formel D
Formel D is a global service provider to the automotive and component supply industry. The company develops concepts and scalable solutions for quality assurance and process optimization along the entire automotive value chain – from development to production through to aftersales. Headquartered in Troisdorf near Cologne, the company was founded in 1993 and has over 7,000 employees at 80 locations in 19 countries worldwide. The company is managed by the Managing Directors Dr. Holger JENÉ, Dr. Jürgen LAAKMANN and Claus NIEDWOROK. For more information, please visit www.formeld.com
About CITIC Capital Founded in 2002, CITIC Capital Holdings Limited is an alternative investment management and advisory company. The firm manages over USD20 billion of capital from a diverse group of international institutional investors. Core businesses include Private Equity, Real Estate, Structured Investment & Finance, and Asset Management. CITIC Capital currently employs over 250 staff members throughout its offices in Hong Kong, Shanghai, Beijing, Shenzhen, Tokyo and New York. For more information, please visit www.citiccapital.com CITIC Capital’s private equity arm, CITIC Capital Partners, leverages its extensive resources to help companies realise their full potential in Asia, and has completed over 50 investments in the past years in China, Japan, the US and Australia. The firm currently manages USD4.8 billion of committed capital. About 3i Group 3i is a leading international investment manager focused on mid-market private equity and infrastructure. Its core investment markets are northern Europe and North America. For further information, please visit www.3i.com