CITIC takes minority stake in Loscam

CITIC Capital Partners has acquired a 33 percent stake in Loscam, a supply chain pooling solution provider, from Sinotrans. No financial terms were disclosed. Latham & Watkins LLP provided legal counsel to CITIC Capital on the transaction.

PRESS RELEASE

(Hong Kong, 20 December 2018) CITIC Capital Partners, the private equity arm of CITIC Capital Holdings Limited (“CITIC Capital”), is pleased to announce that its China buyout fund has completed the acquisition of a 33% stake in leading pallet and other returnable packaging pooling solution provider China Merchants Loscam (“Loscam” or “the Company”) from Sinotrans Limited (or “Sinotrans”). This is the fifth carve-out deals CITIC Capital has completed in the last two years (Note 1).

The sale is part of Sinotrans’ ongoing efforts to implement its strategy of focusing core business. Following the transaction, Sinotrans will hold 45% of Loscam, while the other investor will hold 22% of the Company.
Established in 1942 and operating in 12 countries throughout Asia Pacific, Loscam engages in the leasing and pooling of pallet and other returnable packaging equipment and helps to modernize retail and manufacturing supply chains to minimize the handling of products as mthey move through the logistics flow. Loscam is dedicated to delivering high-quality, innovative and environmentally sustainable solutions and fit-for-purpose systems and procedures to the local markets. Loscam has been a trusted brand for pooling and returnable packaging solutions used in supply chains and has leading market position in Australia, New Zealand, Southeast Asia and Greater China.

Yichen ZHANG, Chairman & CEO of CITIC Capital, said: “We are excited about the opportunity to invest in Loscam and work closely with the exceptional management team who has built a solid footprint in Asia Pacific. China is one of the fast-growing markets, and leasing propensity and pooling model are still relatively new compared with other developed markets. We see huge growth potential in China with adoption of pooling model to improve supply chain efficiency and standardization. We look forward to leveraging CITIC Capital’s unique resources in supporting the team.”

Latham & Watkins LLP served as legal counsel to CITIC Capital.

Note 1: Recently completed carve-out deals include McDonald’s business in mainland China and Hong Kong, sexual wellness company LifeStyles, Wall Street English, and financial information database operator Global Marketing Intelligence Division.

About CITIC Capital Holdings Limited
Founded in 2002, CITIC Capital is an alternative investment management and advisory company. The firm manages over USD25 billion of capital across 100 funds and investment products through its multi-asset class platform covering private equity, real estate, structured investment & finance, and asset management. 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, focused on control buyout opportunities globally, has completed over 60 investments in the past years in China, Japan, U.S. and Europe. The private equity arm currently manages USD6 billion of committed capital.
For more information, please visit www.citiccapital.com