EQT Greater China sells Qinyuan Bakery
The EQT Greater China II Fund (“EQT Greater China”) has sold its 65% equity stake in Chongqing New Qinyuan Bakery Co., Ltd. (“Qinyuan Bakery” or the “Company”), a leading retail bakery chain in Southwest China, to Swire Foods Holding Limited (“Swire Foods”), a subsidiary of Swire Pacific Limited.
Established in 1989 and currently operating a network of 460 stores in Chongqing, Guizhou and Sichuan, Qinyuan Bakery produces and serves pastries, cakes, cookies, beverages, mooncakes and rice dumplings. Its unique selling concept includes a long-established brand, a strong value proposition, production using high quality raw materials, and a modern store design. Qinyuan Bakery’s offering targets mainstream consumers with a modern, healthy and family-oriented life-style.
EQT Greater China invested in Qinyuan Bakery in 2010. Since then, the corporate governance has been strengthened and the Company has leveraged EQT’s network and deep experience in the consumer and retail sector. The store footprint has been further developed, the store format upgraded with onsite baking and the corporate sales increased.
“During EQT Greater China’s ownership, Qinyuan Bakery has developed successfully its strong brand and store network in Southwest China. We are grateful for the founders’, LIU Chong Mei and CHEN Ze Xiang, leadership and are convinced that Qinyuan Bakery will continue to develop well,” says Martin Mok, Partner at EQT Partners and Investment Advisor to EQT Greater China.
“We have more than doubled Qinyuan Bakery in size during the past four years since EQT invested. It is a result of successful integration of EQT’s corporate governance model, a good market development and the management team’s dedication to grow the business. We are confident Qinyuan Bakery will continue to do well with Swire Foods as our new partner,” says LIU Chong Mei, Founder and CEO of Qinyuan Bakery.
The transaction received regulatory approvals on November 5, 2014 and closed on December 5, 2014.
Martin Mok, Partner at EQT Partners, Investment Advisor to EQT Greater China II, +852 2971 5850
Johan Hähnel, EQT Greater China II Spokesperson, +46 706 05 63 34
EQT is the leading private equity group in Northern Europe, with portfolio companies in Northern and Eastern Europe, Asia and the US with total sales of more than EUR 25 billion and over 500,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
More information can be found on www.eqt.se
About Qinyuan Bakery
Qinyuan Bakery is a leading retail bakery chain in Southwest China with Chongqing, Guizhou and Sichuan as three main markets. Qinyuan bakery offers a variety of bakery products and festival products with a modern, healthy and family oriented concept. The company was established in 1989 and has approximately 460 stores today.
More information can be found on www.cqqinyuan.com