ShawKwei & Partners invests US$40 Million into SCHMID Group

Germany and Hong Kong – 13 October 2014: Shaw Kwei & Partners, an Asian private equity fund manager, has invested US$40 million into Gebr. Schmid GmbH (“SCHMID Group”) through a convertible bond. SCHMID Group, which this year is celebrating its 150th anniversary of continuous operations, is owned by the Schmid family. SCHMID Group will use the new investment funds for expanding its business in Germany and China to meet rising customer orders.

SCHMID Group is recognized worldwide as a technology leader with a proven track record of continuous innovation. SCHMID Group designs and manufactures capital equipment as well as fully integrated lines and facilities for the production of printed circuit boards, photovoltaic products, flat panel displays, factory automation, medical and pharmaceutical related equipment, and energy storage systems. SCHMID Group’s products share the firm’s technical expertise, be it through wet chemical processes, high temperature processes, vacuum technology, robotics, quality inspection systems, or software solutions for factory automation. Founded 150 years ago in Germany’s Black Forest, SCHMID Group today has design and production facilities in Germany, China, Switzerland and the US with sales offices around the world.

Shaw Kwei & Partners’ Managing Director and Founder Kyle Shaw stated, “Our investment with SCHMID Group is a unique opportunity to work with a global management team with deep understanding of leading-edge manufacturing and automation equipment. SCHMID Group has a genuine history of product innovation over several decades and a proven record of developing technology for its customer requirements and needs. This is Shaw Kwei & Partners’ second investment with a German Mittelstand company and we are keen to help promote and expand SCHMID Group’s growth in Asia.”

Shaw Kwei & Partners is an Asian private equity fund manager with offices in Hong Kong and Singapore targeting unique opportunities needing sophisticated deal execution skills and Asian expertise. The investment into SCHMID Group comes from Shaw Kwei & Partners’ third fund raised in 2011. Since 1999, Shaw Kwei & Partners has invested across a variety of manufacturing and service businesses, providing assistance on business strategy, corporate governance, and financial planning to achieve long-term success. This long Asian investment experience enables Shaw Kwei & Partners to understand the special management and competitive challenges facing businesses operating in today’s global marketplace. Kyle Shaw led the
buyout of Flextronics International Ltd in 1990 with two other Shaw Kwei & Partners executives. More recently in February 2012 Shaw Kwei & Partners led the US$115 million buyout of Beyonics Technology Ltd from the Singapore Stock Exchange. Beyonics is a manufacturer of printed circuit board assembly, plastic injection parts, aluminum casting and machining, and metal stamped components for automotive, industrial, and medical customers.