CITIC Capital Partners’s China buyout fund has closed the acquisition of a 33% interest in pallet and other returnable packaging pooling solution provider China Merchants Loscam from Sinotrans for an undisclosed amount.
In the last two years, this is the fifth deal CITIC Capital has completed. The divestment is part of Sinotrans’ efforts to focus on its core business.
After the completion of the deal, Sinotrans will have a 45% stake in Loscam, while the other investor will hold 22% of the company.
Set up in 1942, Loscam has operations in 12 countries across Asia-Pacific. It focuses on the leasing and pooling of pallet and other returnable packaging equipment, which aid in modernising retail and manufacturing supply chains to reduce the handling of products as they move through the logistics flow.
Loscam offers environmentally sustainable solutions and fit-for-purpose systems and procedures to local markets. It is claimed to have a leading market position in Australia, New Zealand, Southeast Asia, and Greater China.
CITIC Capital chairman and CEO Yichen Zhang 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 the 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 the adoption of the pooling model to improve supply chain efficiency and standardisation. We look forward to leveraging CITIC Capital’s unique resources in supporting the team.”
Latham and Watkins served as legal counsel to CITIC Capital, which is the private equity arm of CITIC Capital Holdings Limited.