Baird Capital Partners has joined specialist van manufacturer CCI and its portfolio company Great Dane in a financing deal for China’s Henan Bingxiong Refrigerated Truck Company.
The company, known as Ice Bear, said it would use the financing to expand its manufacturing facilities in Henan and Shanghai.
Ice Bear will make use of Great Dane’s global operating resources and engineering expertise in an attempt to grow its domestic market position.
Great Dane, a 110-year-old manufacturer, pioneered the refrigerated trailer industry in the US and is currently the leading producer of refrigerated truck and trailer technology.
The cold supply chain market in China is underdeveloped compared to developed countries with most perishable foods, such as meat, fruits, vegetables, dairy and soybean products shipped by non-refrigerated trucks.
It is estimated that the lack of effective cold supply chain systems in China results in 20 per cent to 40 per cent food spoilage loss valued at more than $65bn a year.
Rising income levels and higher food safety demands by both the Chinese government and Chinese consumers are expected to drive a more sophisticated cold supply chain and the need for refrigerated trucks.
Baird Capital Partners Asia partner Brett Tucker said, “For the last three years we have been working closely with Great Dane and CCI on identifying opportunities in the cold chain industry in China.
“We believe Great Dane’s wealth of operating and industry experience, combined with our on-the-ground investment and operating team in China, will bring significant value to Ice Bear.”
Great Dane’s Dean Engelage and Tucker will join the Ice Bear board of directors as part of the deal.
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