Xiabu Xiabu Dealt in Secondary PE Transaction

General Atlantic LLC will acquire the shares held by Actis in Xiabu Xiabu, the Chinese bar-style hotspot brand. Specifics of the deal were not publicized. Xiabu has over 300 restaurants in places like Hebei, Liaoning and Shanghai.


HONG KONG & BEIJING–Xiabu Xiabu, the leading bar-style hotpot brand, today announced the completion of investment by global growth equity firm General Atlantic LLC (“GA”), who acquired all the shares held by global emerging markets private equity specialist Actis.
Since its establishment, Xiabu Xiabu has become the largest individual, bar-style hotpot restaurant chain in China. It has over 300 restaurants covering major metropolitan markets and cities, including Beijing, Shanghai, Tianjin, Hebei, Jiangsu and Liaoning. The company has been expanding rapidly; its management team has been focusing on delivering excellent quality food and leading industry trend, while standardizing management controls and driving higher customer loyalty.
“We are very pleased to have General Atlantic as our new investor and grateful for Actis’ investment in Xiabu Xiabu over the years. Our ability to attract international investors continues to center on our organization’s excellence in seven core areas: our persistence in delivering outstanding quality to customers; team spirit at work; optimizing and standardizing management controls; a focus on our core business and stable development; scalable cross-region development and operating models; a vigor for innovation and tackling challenges. Both GA and Actis are globally well-known private equity firms. I believe the introduction of GA will certainly help Xiabu Xiabu advance to a new height,” said Ho Kuang-chi, Founder and Chairman of Xiabu Xiabu.
“Actis’ investment in Xiabu Xiabu brought us a brand new operating vision that helped to strategize our development plan, standardize our corporate operations and attract talented staff. All these are instrumental in helping the Company to become a leading catering brand in China,” added Mr. Ho.
“Xiabu Xiabu is a well-known consumer brand in China. We admire Xiabu Xiabu management team, led by its founder, Mr. Ho Kuang-chi, and recognize the Company’s proven operating model centered on its consumer-focused philosophy. We are confident in the Company’s long-term growth prospects,” said William E. Ford, CEO of General Atlantic. “We support the leadership of Mr. Ho and his management team and will work together to develop Xiabu Xiabu as a model enterprise in the restaurant chain industry in China.”
“Xiabu Xiabu is a very successful investment for Actis in China. In the past few years, we have witnessed the exuberant growth of the Company. Under the leadership of Mr. Ho and the management team, Xiabu Xiabu has grown from a regional catering company into one of the most influential catering brands in China. Their success is widely recognized. We are proud of being Xiabu Xiabu’s partner in the first round of investment, and we have huge confidence in the Company’s future development,” said Mr. Paul Fletcher, Senior Partner, Actis.
“Investors are willing to invest in companies with solid development prospects,” noted Dr Pei Liang, Secretary-General of China Chain Store & Franchise Association. “Over the past two years, the scale and profitability of Chinese catering businesses have faced challenges as labor, raw material costs and leases continue to rise. Despite all these, Xiabu Xiabu has been able to maintain rapid growth in its revenue and profit as it continues to attract investors.”
The Xiabu Xiabu management and GA have aligned on the company’s development strategy. Xiabu Xiabu will continue to be committed to fast growth and meeting expectations from its consumers, employees and society.
About General Atlantic
General Atlantic is a leading global growth equity firm providing capital and strategic support for growth companies. GA combines a collaborative global approach, sector specific expertise, long-term investment horizon and a deep understanding of growth drivers to partner with great management and build exceptional businesses worldwide. Established in 1980, GA manages approximately $17 billion in capital with over 80 investment professionals based in Greenwich, New York, Palo Alto, London, Munich, Hong Kong, Beijing, Singapore, Mumbai and São Paulo. GA focuses on providing growth equity investments in leading companies from emerging market consumer, healthcare, energy & resources, business services, internet and technology and financial services.
About Actis
Actis invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has US$5 billion funds under management. Combining the expertise of over 100 investment professionals on the ground in nine countries, Actis identifies investment opportunities in three areas: private equity, energy and real estate. Actis is strongly committed to China with close to US$1bn invested in leading Chinese businesses. Actis is proud to actively and positively grow the value of those companies in which it invests and in so doing contribute to broader society.