In the News: 2005

Lombard's Portfolio Company, Fu Sheng Industrial, Announces Its Third U.S. Acquisition

PR Newswire
25 January 2005

FS-America, Inc ("FS-America"), a subsidiary of Fu Sheng Industrial Company Ltd. ("Fu Sheng") (1520.TW), announced that it has acquired 100% of the outstanding share capital of Curtis-Toledo, Inc., a corporation incorporated under the laws of Missouri ("Curtis"). Curtis was founded in 1854 and has been engaged in the design and sale of reciprocating and screw air compressors in the US market.

"The Curtis acquisition is part of Fu Sheng’s global expansion strategy. Curtis has been in the US market for more than 150 years and carried a strong brand name of quality.  This represents a tremendous opportunity for Fu Sheng to build its compressor business in the Americas.  With the acquisition of the Plant Air-Package centrifugal compressor Division ("PAP") of Elliott Company in 2003, Fu Sheng now has a complete product line of well-recognized brand names in both the US and international markets," said William Kerins, Lombard’s Managing Director in Hong Kong, who serves on the board of directors of Fu Sheng.   

Fu Sheng, headquartered in Taiwan, was founded in 1953 as a manufacturer and distributor of air compressors. With more than 30 representative offices in China and Taiwan, it is the largest manufacturer and distributor of compressors in the Greater China region. Fu Sheng is also the largest manufacturer of golf club heads in the world, producing club heads on an OEM basis for most premium golf brands.
 
Lombard Asian Private Investment Company LDC ("LAPIC") invested in Fu Sheng in May 2003. LAPIC is a US$252.5 million private equity fund sponsored by Lombard Investments, Inc., headquartered in San Francisco, and the Asian Development Bank (ADB). The fund was formed to make direct private equity investments in developing countries in the Asia-Pacific region. Investors in the fund include the ADB and California Public Employees’ Retirement System (CalPERS).

Lombard was actively involved in the acquisition of Curtis, assisting Fu Sheng in the assessment of the new business, negotiations, structuring the transaction, and managing the due diligence and closing processes. "Fu Sheng’s management has a long history of building leading manufacturing businesses, and we look forward to assisting Fu Sheng in identifying other acquisition opportunities through the utilization of our global network," said William Kerins.