2011/06/06

BDA advises Jiangsu Xinghe on strategic investment from Baird and Investor Growth Capital Asia

Secured strategic investment from Baird and Investor Growth Capital Area

2011

Business Development Asia LLC (“BDA”) is pleased to announce that its client, Jiangsu Xinghe Group Co Ltd (“Xinghe Group”), has entered into a strategic partnership with Baird Capital Partners Asia (“BCPA”) and Investor Growth Capital Asia (“IGCA”) for its instrumentation valve and fittings subsidiary Jiangsu Xinghe Valve Co Ltd (“Xinghe Valve”), for an undisclosed consideration.

“We are excited to have Baird Capital Partners Asia and Investor Growth Capital Asia as partners as we continue to expand our operations and provide high quality products and service to our customers,” said Mr. Kuang Xihe, Chairman of Xinghe Group.

“Xinghe, under the strong leadership of its founder and Chairman Mr. Kuang Xihe, has built a track record of growth and profitability and a well known domestic brand in the industry for its quality and reliability. We are very excited about the investment and the partnership with the Xinghe management and its shareholders.  We look forward to working with Mr. Kuang and rest of the Xinghe management team to accelerate its growth and expand its market leadership.” said Huaming Gu, Partner of BCPA.

“Securing this investment for Xinghe shows BDA’s ability to source local opportunities while leveraging relationships with global corporate and financial institutions. We will continue to help high-quality Chinese companies find optimal investors. Meanwhile, we are confident in Xinghe’s success with Baird and Investor AB on board.” said Mark Webster, Managing Director of BDA’s Shanghai office.

BDA acted as the exclusive financial advisor to Xinghe Group and its shareholders on the transaction.

BDA Transaction Team:
Andrew Huntley, Senior Managing Director, London
Mark Webster, Managing Director, Shanghai
Shan Yue, Assistant Director, Shanghai
Tanya Wang, Senior Associate, Shanghai
Xi Ba, Associate, Shanghai

About Jiangsu Xinghe Group Co Ltd
Jiangsu Xinghe Group is a privately owned company engaged in the production of instrumentation valves, tube fittings, and plastic pipes. These products have applications in a wide variety of industries including nuclear power generation, oil & gas, chemical, ship building, municipal water and waste water transportation.  Xinghe conducts its business through two distinct divisions, instrumentation valves and plastic pipes, which have separate manufacturing facilities in Yangzhong, Jiangsu Province.  Its Jiangsu Xinghe Valve Co Ltd subsidiary designs, produces and markets a range of instrumentation valves and fittings for oil and gas, petrochemical, nuclear power plants, waste water and other process control applications. The company is a leading instrumentation valve player in China and one of the few local valve companies that are qualified to supply into the nuclear power industry. For further information about Jiangsu Xinghe Group and its businesses, please visit www.xhchina.cn.

About Baird Capital Partners Asia
Baird Capital Partners Asia, the China-focused growth equity investment group of Baird Private Equity, provides growth equity capital to smaller, high-potential companies in China or with substantial operations and growth opportunities in China.  Baird Capital Partners Asia invests in three industry sectors: manufacturing, business services and healthcare. For more information, please visit www.bairdcapitalpartnersasia.com.
Baird Private Equity, the global private equity group of Robert W. Baird & Co. (Baird), makes venture capital, growth equity and buyout investments in smaller, high potential companies in the United States through Baird Venture Partners and Baird Capital Partners, in China through Baird Capital Partners Asia, and in Europe through Baird Capital Partners Europe.  Baird Private Equity has a global team of investment and operations professionals across the United States, Europe and Asia, including a team of operating professionals in Asia.  Baird Private Equity and its affiliates have raised and managed over $2.7 billion in capital and invested in more than 245 companies since the 1980s.  For more information, please visit www.bairdprivateequity.com.

About Investor Growth Capital Asia
Investor Growth Capital Asia invests in expansion-stage technology companies in the areas of IT, Software, Semiconductors, Internet/Media and Advanced Manufacturing operating within the Asian Region. With offices located in Hong Kong and Beijing, and six investment professionals manage approximately 20 portfolios consisting of companies within Asia, Investor Growth Capital Asia’s investment team seeks to increase the probability of success in portfolio companies by taking a leading role in developing corporate strategies and utilizing the unique combination of Investor Growth Capital’s and Investor AB’s global relationship network.  Investor Growth Capital Asia is a wholly-owned subsidiary of Investor AB.  For more information, please visit www.investorgrowthcapital.com and www.investorab.com.

About Business Development Asia
Business Development Asia LLC (“BDA”) assists multinational corporate and financial sector clients to identify and execute acquisitions, divestments, JVs, restructuring and capital raising, in Asia and internationally. The company is headquartered in New York with offices in London, Bahrain, Mumbai, Hong Kong, Shanghai, Seoul, and Tokyo. BDA employs 60 full-time professional staff across its eight offices, supplemented by a team of senior advisors around the world. BDA’s clients include Areva, AXA Private Equity, Celestica, Clariant, Dai Nippon Ink and Chemicals, Ecolab, Hercules, Kennametal, Molex, Nalco, Pfizer, Rexel, Reuters, Ryder, SigmaKalon, Sun Chemical, Tredegar, WestLB, the Weir Group and the British Government. Further information on BDA is available at www.bdapartners.comFor more information regarding this transaction, please contact Euan Rellie in New York at +1-212-265-5300, Andrew Huntley in London at +44-20- 7182-4514 or Mark Webster in Shanghai at +86-21-5407-5580.