Bain Capital is approaching a deal to acquire a minority stake in EcoCeres - a biomass company that is majority owned by Hong Kong & China Gas Co, reported Bloomberg. The private equity firm is seeking to boost its sustainable investing strategy, according to people familiar with the matter.
The sources claimed the firms are discussing details of a deal that could be worth a few hundred million dollars, with a transaction potentially being announced as early as 12 January.
An investment from Bain would enable Bain to experience turbocharged growth. However, despite negotiations being at an advanced stage, they could still be delayed or come to nothing, the sources added. A representative for Bain declined to comment, while representatives for EcoCeres and Towngas, as the Hong Kong utility giant is known, didn’t immediately respond to requests for comment, Bloomberg said.
EcoCeres was set up in 2021 by Towngas, and it focuses on developing technology that converts waste-based biomass into a wide range of biofuels, biochemicals and biomaterials, according to its website. Its main business includes a hydro-treated vegetable oil plant for converting inedible bio-grease feedstock into advanced biofuels in China’s Jiangsu province. Last year, private equity firm Kerogen Capital invested $108 million in EcoCeres and became a minority investor.
Bain, based in Boston, counts about $160 billion in assets under management in areas including private and public equity, fixed income, credit, venture capital and real estate, its website shows.
Bain “close to buying stake” in biomass firm EcoCeres
