Olympus Capital Holdings Asia, an Asia-focussed midmarket private equity firm established in 1997, has invested $28 million for a 49 percent stake in a joint venture formed with Sichuan Golden Summit, a cement producer listed in Shanghai.
Cement production has been a popular private equity target in China, thanks to the construction boom in the country. Before Olympus Capital’s investment, Kohlberg Kravis Roberts invested $115 million in Tianrui Cement, based in China’s Henan province.
The newly established joint venture ‘Emeishan Special Cement’ will house Golden Summit’s existing dry-line cement production facilities as well as 5,000 tonnes a day of new capacity to be developed with Olympus’ investment, according to a statement.
Edan Lee, managing director of Olympus in China said the investment “illustrates Olympus Capital’s strategy in investing into industries and geographies supported by the Chinese central government policy.” He added that the joint venture will appoint a chief finance officer.
Before this joint venture, Olympus had invested in a processed vegetable exporter based in rural China and a specialty vehicle holding carbon credits from the reduction of emissions at certain chemical plants. The agricultural and environmental sectors are strategic priorities the central government has identified.
Last week, Olympus sold Arysta Lifescience to Permira for $2.2 billion in Japan’s largest buyout transaction.