DECEMBER 2013

Press Review December 2013

EURO-ASIA M&A TRENDS

2013 Year To date (YTD) Global M&A to reach USD 2 157 Bn (+ 5.5% vs. 2012):

  • Cross-border M&A accounts for 35% of total activity in 2013 YTD

    • Cross-border deals totaling USD 559.4 Bn
    • Europe was the most targeted region for cross-border activity with inbound
      activity, representing 38 % of total cross-border activities
  • China leads in Asia

    • N2 most targeted nation for publicly listed companies in 2013 (behind the US)
    • +86% increase of Acquisition of listed Chinese co. in value vs. 2012 YTD

FOOD & BEVERAGE

Beverage

NESTLE (Switzerland) to sell its 10% stake in GIVAUDAN (Switzerland)

NESTLE SA is selling its 10% stake in GIVAUDAN, the flavors & fragrances maker, worth USD 1.3 Bn. NESTLE’s strategy is to unload underperforming businesses & is planning on selling other assets including its POWERBAR fitness bar business, as well as some smaller water brands.

Revenue: USD 4.9 Bn (2013 June LTM)
EBITDA Margin: 15.7% (2013 June LTM)
EV/EBITDA: 13x

December 6th / WSJ & M&A Navigator


Food

EQT (Sweden) buys majority stake in CHINA F&B GROUP (China)

Swedish private equity firm EQT PARTNERS bought a majority stake in CHINA F&B GROUP together with German investment firm SEB PRIVATE EQUITY and Hong Kong based GENERAL ORIENTAL INVESTMENTS. CHINA F&B GROUP controls CHINA DAIRY QUEEN, the largest ice cream restaurant chain in China and PAPA JOHN’S PIZZA, the second largest pizzeria chain in the country.

December 18th / Reuters

ARTAL INVESTMENTS (Europe) buys 44% stake in CAPITAL FOODS (India)

ARTAL INVESTMENTS bought a 44% stake for USD 29.5 M in India’s CAPITAL FOODS. The rest of the stake in CAPITAL FOODS is with the founder-Chairman Ajay Gupta. The deal with ARTAL comes after talks with Japan’s NISSIN FOODS failed.

Revenue: USD 59 M (2012)
EV: USD 74 M

December 11th / Economic Times

HEALTH & BEAUTY

Luxury

LVMH’s L CAPITAL invests USD 72 M for a 40% stake in 2XU (Australia)

LVMH, the Paris-based conglomerate, has paid USD 72 M for a 40 % stake in Melbourne-based 2XU through its Singapore-based investment fund L CAPITAL ASIA. L CAPITAL ASIA values 2XU at USD 180 M. L CAPITAL’s investment in the company is its first by its new USD 1 Bn fund.

EV: USD 180 M
EV/Sales: 2.8x

December 12th / The Australian

CHANEL (France) acquired its tannery to secure luxury bag supplies

CHANEL acquired 100% of its long-time lamb leather provider, the French tannery BODIN-JOYEUX, for an undisclosed amount. CHANEL started buying up partners in the late 80s, owning today several niche fashion suppliers such as LESAGE, feather specialist LEMARIE, hat maker MAISON MICHEL, shoe-maker
MASSARO & the glove-maker CAUSSE.

December 5th / Les Echos


Healthcare

BAYER (Germany) to acquire ALGETA (Norway)

German pharmaceuticals giant BAYER agreed to acquire Norwegian anti-cancer drugs specialist ALGETA for EUR 1.9 Bn. Engaged in the development & manufacture of health care products, nutrition and high-tech materials, this transaction will allow BAYER to consolidate its oncology portfolio.

Revenue: EUR 120 M ((2013 June LTM)
EBITDA: 38% (2013 June LTM)
EV/EBITDA: 32.6x

December 20th / German Collection, FACTSET


Retail

TESCO (UK) plans to buy 50% stake in TRENT HYPERMARKET (India)

Britain’s TESCO Plc is set to become the first foreign supermarket to enter India’s USD 500 Bn retail sector, after it applied to buy a 50% stake in TRENT Hypermarket Ltd, subsidiary of TATA Group. The world’s 3rd
largest retailer made an application to India’s Foreign Investment Promotion Board, planning to invest
USD 110 M.

December 17th / Forbes & Reuters

INDUSTRY & CLEANTECH

Electronics

MERK (Germany) acquired AZ ELECTRONIC MATERIAL (UK)

The global pharmaceutical, chemical & life science company MERCK agreed to acquire the UK-listed AZ ELECTRONIC, leading provider of innovative materials for the high technology electronics market. MERCK expects the transaction to generate annualized synergies of EUR 25 M by 2016.
Revenue: EUR 584 M (2012)

EV : EUR 1.9 Bn
EV/EBITDA: 9.8x

December 5th / WSJ


Renewable Energy

ACTIS (UK) raises USD 1 Bn Energy Fund aimed at renewable energy in emerging markets

ACTIS, an emerging markets-focused PE firm, is looking to clean up power markets in developing economies with its third energy-focused fund. The investment firm plans to use 2/3 of its latest USD 1.15 Bn fund on power generation and approximately 75% of that money will be spent on renewable power projects. According to the International Energy Agency, renewables are already the fastest-growing power generation sector and will make up nearly 25% of the world’s power mix by 2018.

December 12th / WSJ

EDF ENERGIES & EREN (France) to buy resp. 25% of ACME SOLAR (India)

The French renewable energy companies EDF ENERGIES and EREN both acquired 25% stake each in ACME SOLAR ENERGY PRIVATE Ltd., a wholly owned subsidiary of ACME GROUP. The JV plans to set up large scale power plants in India. As part of the deal, the French companies will invest USD 89 M over three years in ACME’s plans.

December 6th / Deal Curry

RRJ Capital (HK) buys USD 350 M stake in CHINA EVERBRIGHT (HK)

Private equity firm RRJ CAPITAL acquired 7.9% shares of the Waste-to energy company CHINA EVERBRIGHT INTERNATIONAL LTD. for USD 350 M. As the Chinese government focuses on chronic pollution issues, CHINA EVERBRIGHT is RRJ’s second bet in China’s waste recycling industry.
Revenue: USD 579 M (2013 June LTM)

EBITDA Margin: 41% (2013 June LTM)

EV/EBITDA: 18.5x

December 12th / WSJ, Reuters & Factiva

NEW TECHNOLOGIES

Software

CSLI (Korea) to acquire pioneer translation software provider SYSTRAN (France)

The Korean leading translation software provider CSLI Co. Ltd plans to acquire 35.8 % stake in SYSTRAN, pioneer provider of machine translation solutions, for ~EUR 15.7 M (EUR 5 per share). CSLI is planning on acquiring the remaining shares on the second half of 2014; based on a successful results in S1 2013 with
an EBITDA of EUR 800K, CSLI valued SYSTRAN at EUR 37.5 M.

EV: EUR 37.5 M
EV/EBITDA: 23x

December 19th / Le Figaro & Reuters

DASSAULT SYSTEMES (France) acquires REALTIME TECHNOLOGY (Germany)

The world leader in 3D software & Product Lifecycle Management solutions, DASSAULT SYSTEMES, announced the acquisition of 84% stake in REALTIME TECHNOLOGY AG (RTT), the leading provider of professional high-end 3D visualization software & marketing solutions. DASSAULT SYSTEMS intends to launch in the coming days an offer in order to purchase up to 100% of RTT”s share capital, at a share price of EUR 40.

Revenue: EUR 81 M (2013 June LTM)
EV/Sales: 2.16x
EV/EBITDA: 16.8x

December 5th / WSJ & Reuters


Social Media

TWITTER (US) planning to acquire FRROLE (India)

TWITTER is planning to acquire the Bangalore-based company FRROLE, a big data startup. FRROLE is a social media platform driven by big data intelligence expanded in over 55 cities in India, the UK, NA and Singapore. It launched earlier this year a mobile apps, and is one of the top startups from the 2013 Microsoft
Ventures Accelerator in India.

December 3rd / Deal Curry & Techcrunch

APPLE (US) acquired TOPSY LABS founded by Indians for USD 200 M

APPLE acquired TOPSY LABS for over USD 200 M. TOPSY LABS is a free search engine for social media networks, tweets or other micro blogging sites.

December 3rd / The Telegraph & WSJ

FACEBOOK (US) to acquire LITTLE EYE LABS (India)

FACEBOOK is also looking to acquire a Bangalore-based IT start-up, LITTLE EYE LABS. Founded in 2012, LITTLE EYE is a tool that helps app developers to estimate their apps’ power, network, for enhanced optimization & consumption trends.

December 3rd / The Times of India


E-Commerce

ROCKET INTERNET (Germany) announces USD 112 M funding for ZALORA (SEA), THE ICONIC (Australia)

Berlin-based company builder ROCKET INTERNET has announced USD 112 M funding for two e-commerce Fashion retailers: ZALORA and THE ICONIC. Launched in March 2012, ZALORA already raised USD 100 M this year from various investors.

December 8th / Venture Village

ALIBABA (China) invests USD 361 M in HAIER ELECTRONICS (HK)

The Chinese e-commerce giant ALIBABA will invest USD 361 M in the appliance maker HAIER ELECTRONICS Group Ltd in a deal aimed at expanding its large sized goods logistics reach millions of Chinese consumers. ALIBABA agreed to acquire 9.9% stake in HAIER’s . online marketplace GOODAYMART. ALIBABA will also acquire 24.1% stake for USD 170 M in the Joint Venture, and additional 2% of HAIER’s enlarged capital for USD 124 M.

Revenue: USD 9.3 (2013 June LTM)
EBITDA Margin: 4% (2013 June LTM)

December 9th / Reuters & Bain & Co.