Actis confirms sale of Vesta stake

Global private equity firm Actis confirmed on Thursday the sale of its 70 percent stake in Vesta, a commercial kitchen equipment maker in China, to US-listed Illinois Tool Works Inc.

Vesta is a leading designer and maker of Western style mid-range commercial kitchen equipment in China, with its flagship brand, Justa, now one of the most influential equipment brands in China.

The sector's growth is underpinned by the rising trend of dining out in China and a growing appetite for Western-style cuisine.

"The Chinese consumer food service industry is a high-growth sector, with rising disposable income and urbanization leading more and more people through the doors of local restaurants," said Zhong Dong, a partner and head of China at Actis.

According to Zhong, Western-style cuisine is proving particularly popular among the growing middle-class and they saw an opportunity to help Vesta capitalize on this trend and have made some progress.