HSBC Private Equity Invests in HCT Shaping Systems

HSBC Private Equity in May led and arranged an institutional funding for HCT Shaping Systems, a Swiss company specialising in machinery and systems for cutting silicon wafers for the semi-conductor and photovoltaic industries.

HCT’s wire-saw cutting technology enables silicon wafers to be cut with more precision than conventional diamond-saw equipment, thus reducing wastage and obviating the need for lapping the wafers.

HCT currently has sales of some CHFr 50 million (ecu 30.6 million) and is described by HSBC as “very profitable”. The group is now looking to transfer its technology into new fields, such as ceramics, and to increase its share of existing markets with a view to an initial public offering on a large international market in the short to medium term.

HSBC’s investment, for a majority stake, enabled HCT’s founder, Dr Charles Hauser, who remains as executive chairman, to realise part of his investment in the company while reinvesting substantially in the newco. HSBC Private Equity invested its own and clients’ monies in HCT through the HSBC Private Equity Partnership Scheme. Deutsche Bank, Paris, and Paribas arranged debt for the deal. Financial details of the transaction have not been disclosed.

Paul Williams of HSBC Private Equity explained that, by bringing in a private equity backer, Dr Hauser was seeking a means of “institutionalising” HCT prior to the anticipated IPO. The new owners now plan to bolster the management team in preparation for flotation.

The investment in HCT was the first deal coordinated out of HSBC Private Equity’s new Paris representative office (story, page 9).