Gimv et al. in final exit of Punch Powertrain

According to Capricorn, the deal would value Punch Powertrain at around €1bn, given the €500m turnover and €100m EBITDA forecast for 2016. The deal is still subject to the customary regulatory approvals and would see Yinyi wholly acquire the business.

Besides Gimv and Capricorn, the transaction will mark an exit for Chinese private equity firm New Horizon Capital. Gimv and other shareholders had divested 30% of their stake in Punch Powertrain to New Horizon in late 2013 – Gimv remained the company's largest shareholder at the time despite the divestment, with a 32% stake. Capricorn's holding was reduced to 8.5%.

Gimv had provided €18m to acquire a 46% stake in Punch Powertrain in March 2010. Gimv led the €24m funding round, which also saw Capricorn Venture Partners supply €6m in exchange for a 15% stake, according to unquote" data. Gimv had backed the company via its Gimv XL fund, while Capricorn backed the company through the €100m Capricorn Cleantech Fund.

Since the 2010 deal, Punch Powertrain's turnover is said to have increased nearly fivefold to €326m, with headcount growing from 210 to more than 1,200.

Established in 1994, Yinyi is a private conglomerate of companies active in various sectors, and is ranked among China's top 500 companies. In 2014, the group posted revenues of €7.6bn.

Company
Founded in 1972, Punch Powertrain is headquartered in Sint-Truiden with additional bases in China, Malaysia, India and the Netherlands. It designs and manufactures continuously variable transmissions (CVTs) – or automative gearboxes – and hybrid powertrains for the automotive industry, with a particular focus on the Asian automotive market.

People
Gimv – Bart Cauberghe (partner).
Capricorn Ventures – Jos Peeters (managing partner).

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