Bain Capital acquires Asimco

Chinese auto parts manufacturer Asimco Technologies has agreed to be acquired by Bain Capital for US$150 million, including equity and the assumption of US$10 million in debt, the Wall Street Journal reported, citing sources familiar with the transaction. Bain is buying Asimco from a consortium of 30 shareholders, including Cleveland-based financial services firm Keycorp (KEY.NYSE) and the private-equity arm of American International Group (AIG.NYSE). Sources say that Bain likes the Beijing-based company’s 16 years of China experience, plus its market positioning; as car manufacturers are required to upgrade to meet stringent new emissions targets, they will be forced to purchase more components. In 2009, Asimco sold approximately US$500 million worth of engine components for for commercial and heavy vehicles, sales of which are expected to rise.