Bain Capital to buy China Fire & Security for $265.5 million

China Fire & Security Group, Inc. a provider of industrial fire protection systems in China, yesterday agreed to sell itself to Amber Parent Ltd, an affiliate of private equity firm Bain Capital Partners and Amber Mergerco Inc., for $265.5 million.

Founded in 1995 and based in Beijing with about 430 employees, China Fire makes a broad product portfolio including detectors, controllers, and fire extinguishers. 

Its client base includes major companies in iron and steel, power, petrochemical and transportation industries throughout China. 

Under the terms of the merger agreement, each share of the company's common stock issued and outstanding immediately prior to the effective time of the merger will be cancelled in exchange for the right to receive $9.00 in cash.

Bain Capital and Amber will pay approximately $265.5 million, a premium of 44 per cent over China Fire's closing price on 4 March 2011 and a 38 per cent premium over the company's 90-trading day volume weighted average price as of 19 May 2011.

The merger is currently expected to close before 15 November 2011.

Boston-based Bain Capital is a global private investment firm that manages several pools of capital, including private equity, venture capital, public equity, credit products and absolute return, with approximately $65 billion in assets under management.