Summit Strategic Investments, a $120m private equity fund controlled by China-based automotive parts manufacturer Wanxiang Group, has sold US-based D&R Technology to CTS for $63.5m.
D&R had annual sales of about $50m.
Wanxiang committed 30% of the money to the fund in June 2011 to invest in American and Chinese companies.
At the time of the fundraising, Roger Brown, chief executive of Summit, said: “Having a partner that is one of the largest privately held companies in China with offices located around the world, allows us to leverage and grow our investments into other geographical markets.”
Brown had previously ran parts maker Vista-Pro, which Wanxiang took a minority stake in.
Corporations have been expanding their venturing units to include minority and majority stake purchases. Last week, commodities trading group Trafigura said its Galena fund would take stakes of between 25% and 60%, while India-based media conglomerate Essel Group set up an investment unit, Essel Financial Services for private equity, infrastructure, real estate and financial services.
China-based technology group Legend has also run a ventures unit, Legend Capital, along with a separate buyouts unit, Hony Capital.
John Zhao, head of Hony, has become the chairman of trade body China Private Equity and Venture Capital Association.