Exclusive sale and purchase agreement for the sale of Punch Powertrain to the Chinese YinYi group

Leuven, Belgium: 10 March 2016 - Capricorn Venture Partners NV announces that the shareholders of Punch Powertrain signed an exclusive sale and purchase agreement with the Chinese YinYi group to acquire 100% of the shares of the Belgian company Punch Powertrain. The valuation agreed upon in the context of this transaction indicates that based on a 2016 sales forecast of € 500 million and expected EBITDA of over € 100 million the enterprise value of Punch Powertrain would be around € 1 billion. The transaction is still subject to a number of financial and regulatory conditions.

Having pioneered continuously variable transmission (CVT) technology in the 1970s, Punch Powertrain now has an established position in the fast growing Chinese and Asian automotive markets, to which its products have been tailored through 40 years of CVT development. Punch Powertrain has also made significant investments in cutting-edge hybrid and electric powertrain technology. This positions the company to benefit from the increasing focus on fuel efficiency and emissions reduction in global automotive markets, especially in growing urban traffic.

In March 2010 Capricorn Cleantech Fund acquired a 12 percent stake in Punch Powertrain at the occasion of a capital increase. In December 2013 Capricorn Cleantech Fund, together with the other shareholders (i.e. LRM, Gimv and Gimv-managed Gimv-XL fund, PMV and management) sold 30 percent of their stake in Punch Powertrain to the China-focused private equity fund New Horizon Capital. After this partial exit Capricorn Cleantech Fund's stake dropped to 8.5 percent.

Since Capricorn Cleantech Fund's investment in Punch Powertrain in 2010, turnover has almost increased fivefold to EUR 326 million. At the same time the number of employees grew from 210 to more than 1,200 FTEs. In addition, it expanded its customer base and broadened its products range. Today, its largest-ever order book points to a great number of vehicles with Punch Powertrain transmissions being built over the next few years, ensuring growth. Moreover, Punch Powertrain plans to continue its innovation track and is currently adding plant capacity in both China and Europe.

More info on the press release.

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