Global investment firm KKR announced on Thursday the purchase of a majority stake in the Chinese lighting business of Hong Kong-listed NVC Lighting.
The investment, which was made from the $9.3 billion KKR Asian Fund III, saw KKR become a majority shareholder of NVC China with a 70 per cent stake, while NVC International holds the other 30 per cent, according to a statement.
The transaction came months after the New York-based private equity company disclosed this August that it would spend about 5.56 billion yuan ($790 million) for a majority stake in NVC China, which was expected to complete in the fourth quarter of 2019.
Together with KKR and NVC International, NVC China aims to enhance its ability to meet Chinese consumers and businesses’ demand for high-quality lighting products and solutions.
The deal enables NVC China to undertake “a long-term growth strategy,” seeking to “adopt enhanced technologies and practices to differentiate itself as an industry innovator in areas such as energy conservation,” said NVC China in the statement.
NVC China operates as a manufacturer of branded lighting products in China, and additionally provides lighting solutions to individual and corporate clients through a distribution network across the country.
“KKR will support the NVC’s China management team and look to accelerate the company’s expansion plans and identify new opportunities for growth across cutting-edge design, digital optimization, and environmental sustainability,” said Paul Yang, member and head of KKR Greater China.
Yang added that KKR will work with NVC China’s current operation centres and distributors with “strengthened and continuous investment in China.”
China remains as a core focus within KKR’s Asia Pacific strategy. The company, which already deployed over $4.6 billion in the market since 2007, is seeking to collect $12.5 billion for its fourth buyout fund targeting Asia, according to a fundraising document filed this November.