Carlyle Group Invests 85M In Chinese Vending Machine Operator Ubox

WASHINGTON -- Private-equity firm Carlyle Group LP said it has agreed to pay 530 million yuan ($85 million) for an undisclosed stake in Beijing Ubox Technology & Trade Co Ltd., a vending machine operator. The Washington, DC-based company made the investment through its Carlyle Beijing Partners Fund, which was formed with the support of the Beijing Municipal government.

Ubox, founded in 2010, operates more than 30,000 vending machines across 58 cities in China. In addition to traditional vending, Ubox provides integrated "online-to-offline" shopping, which allows customers to use a mobile app to shop, then pick up their purchases at a Ubox vending machine.

Carlyle said it sees "great potential for growth" in China's vending industry as the country's disposable income and urban population density continue to rise.

"Ubox is founded by a group of Internet veterans with a solid information technology background, and its smart vending machines with a proprietary information technology system are specifically designed to suit the needs of the people in the mobile Internet era," said Jeffrey Gui, managing director of the Carlyle Asia buyout team.

Ubox chairman Wang Bin said the partnership will enable the vending company to expand its operation, improve its digital marketing and advertising business, and explore other value-add services.

Carlyle has invested approximately $6.3 billion in 81 equity transactions in China as of June 30.