JULY 2013

Press Review July 2013

EURO-ASIA M&A TRENDS

Europe is world’s N°2 destination for M&A deals, after Asia and followed by America, according to a recent report* about the M&A activity in the first quarter 2013 by law firm CLIFFORD CHANCE.
42% of large international companies see opportunities for growth and acquisitions in Europe. 64% of Asian investors are willing to undertake an acquisition in Europe: they are looking for brands to develop in Europe, and also want to get the know-how to put in practice in their home country.
Among the European countries, UK (88%) and Germany (62%) are the top 2 destinations thanks to their stable political/economic framework, while France attracts only 22% of investors. (See the graph below)

Attractiveness ranking in Europe for M&A deals

Press Review July 2013

*« Is the European market on the way to recovery? » by The Economist Intelligence Unit of CLIFFORD CHANCE

FOOD & BEVERAGE

Beverage

MANPASAND BEVERAGES (India) attracts PE interest

MANPASAND BEVERAGES, a juice manufacturing & marketing firm, received interest from PE funds WARBURG PINCUS (USA) & EVERSTONE CAPITAL (India) for minority stake investments. The company is valued at ~ USD 166 M. The additional funding will be used for capacity expansion, product launches & expansion into new market. India’s strong consumption growth has been attracting PE players to target mid-sized FMCG companies. The packaged juices industry is projected to grow at 15% CAGR for the next 3 years.

EV/Revenue: 3.3x

July 3rd / Business Standard

NESTLE WATERS (Switzerland) sold its mineral brand CAROLA to SPADEL (Belgium)

NESTLE WATERS has sold its mineral water brand CAROLA (Revenue: ~EUR 17 M) to Belgian group SPADEL to focus its business to the leading brands like PERRIER, VITTEL, CONTREX and SAN PELLEGRINO. The buyer SPADEL is the regional mineral water leader in Benelux. With the acquisition, the new structure SPADEL FRANCE has 96 employees and generates a turnover of EUR 30 M. According to SPADEL, the acquisition will enable the group to have a strong position on the café, hotel and restaurant markets in the Alsace region. The financial details are not disclosed.

July 8th / Les Echos


Food

Family PINAULT (France) becomes majority shareholder of MICHEL ET AUGUSTIN (France)

ARTEMIS, the holding of Family PINAULT now holds 70% of the capital of MICHEL ET AUGUSTIN, the French yogurt and biscuit manufacturer. The two founders hold the remaining 30%. The company generates a turnover of EUR 8 M in 2012 with a growth of 30%. The holding ARTEMIS is the owner of several chateaux like the famous Chateau Latour, it’s also the minority shareholder of KERING Group and media groups like LE POINT.

EV/Revenue: 1.5x

July 9th / Fusaq.com

QUADRIA INDIA (Singapore & India) invests in CAPRICORN FOOD (India)

CAPRICORN FOOD PRODUCTS (India), an integrated fruit & vegetable processing company, received USD 10 M investment from QUADRIA CAPITAL, an Asian PE fund focusing on healthcare, education & hospitals. CAPRICORN FOOD plans to expand its existing manufacturing facilities & add new product lines. The Indian food processing industry is set to reach USD 200 Bn by 2015, growing at 15% CAGR. It currently accounts for 32% of total food market.

July 22nd / Deal Curry

CANDIA (France) to set up its first shop in China

French milk brand CANDIA opened its first shop on July 23 in the eastern city of Wenzhou in a bid to ride on the wave of booming demand for foreign baby formula following a succession of food safety scares. Ten other shops will open before the end of the year, centered around the eastern coast in the cities of Hangzhou and Ningbo. Chinese parents have become distrustful of domestic milk brands, particularly after a huge 2008 scandal involving formula tainted with melamine that killed six children and sickened 300,000 others. Foreign brands have benefitted as parents choose to buy non-domestic products, driven by the belief they are of better quality.

July 29th / Asia One


Wine & Spirits

ROYAL UNIBREW (Denmark) acquires HARTWALL (Finland)

ROYAL UNIBREW, the second-largest brewery group in Denmark, which produces quality beverages, announced the acquisition of HARTWALL, a beverage company, from HEINEKEN GROUP (The Netherlands). ROYAL UNIBREW intends to remain a long-term focused owner and improve HARTWALL’s earnings by increasing commercial and operational strengths.

EV/Revenue: 1.4x
EV/EBITDA: ~13x

July 11th / The Financial Times

DIAGEO (UK) acquires CHENGDU SICHUAN SWELLFUN CO (China)

The British spirits group DIAGEO becomes the sole shareholder of CHENGDU SICHUAN SWELLFUN GROUP Company (Holdco SJF), owner of the white spirits “Bai jiu” producer SWELLFUN, after obtaining the authorization by the Chinese authorities. In a statement, DIAGEO said it will take 47% of the Holdco SJF held by its Chinese partners for EUR 271 M. As a result, Holdco SJF will be converted from a JV into a wholly foreign-owned enterprise owned by DIAGEO.

EV/Revenue: 3x
EV/EBITDA: 8.5x

July 23rd / Factiva & Reuters


Food Ingredients

IVFA (India) to acquire stake in VKL SEASONING (India)

INDIA VALUE FUND ADVISOR, a PE & VC firm, is investing USD 40 M for an undisclosed stake in VKL SEASONING, a producer of ready-to-use seasonings to quick restaurants segments in India. VKL plans to grow its domestic capacities & expand in Middle East & Africa. One of IVFA’s investment criteria is for the companies to have high-quality talent, professional management practices & systems which help in transforming mid-sized profitable businesses into industry leaders.

July 3rd / Deal Curry

HEALTH & BEAUTY

Luxury

LVMH (France) acquires LORO PIANA (Italy)

LVMH extends its offer in the luxurious sector, acquiring 80% of the Italian firm LORO PIANA, well-known for its products made out of cashmere and rare wool. Sergio and Pier Luigi Loro Piana keep 20% of the capital, as well as their respective titles in the Company. They are expecting Asian clients to be attracted by those high-value products made in Italy. This comes after LVMH acquired the Jeweler BULGARI in 2011, and had accused a sharp deceleration in the growth of its sales in the fashion and leather goods in the first quarter in an economy hit by the crisis in Europe and a slowing growth in China.

EV/Revenue: 3.8x
EV/EBITDA: ~19x

July 8th / Les Echos & Reuters


Healthcare

ACTIS PE (UK) to acquire 25% stake in SYMBIOTEC PHARMALAB (India)

ACTIS PE, a private equity firm investing exclusively in Asia, Africa & Latin America, is planning to acquire 25% stake for ~USD 50 M in SYMBIOTEC PHARMALAB, which develops, manufactures and markets bulk drugs. Founded in 2002, SYMBIOTEC manufactures over 45 products in two manufacturing facilities in India. Funds raised will be used to further develop R&D and build new plants.

EV/Revenue: 2.4x
EV/EBITDA: ~16x

July 8th / Deal Curry

CEVA (France) to acquire controlling stake in Chinese animal health subsidiary

France-based CEVA Sante Animale S.A.said Friday that it has inked an agreement to acquire a controlling stake in Sichuan HENGTONG‘s animal health subsidiary in China. No financial terms were disclosed. Based in the Sichuan Province, China, Sichuan HENGTONG is a provider of powder and liquid pharmaceuticals and animal health pharmaceuticals. Spun-off from SANOFI AVENTIS, CEVA is an animal health group that is backed by PAI Partners, Industri Kapital, Euromezzanine and Natixis Private Equity. The transaction will allow CEVA to significantly increase its business scope in China, especially in the chemical drug segment for animal health.

July 19th / Yahoo


Cosmetics & Toiletries

LVMH (France) invests in MARUBI (China)

LVMH, through its PE fund L CAPITAL, plans to invest ~ USD 100 M in MARUBI, a Chinese domestic cosmetics brand for a 49% stake. LVMH plans to propel the domestic brand into the global spotlight through partnership with Dior & distribution by Sephora. It will also assist in product development, design, marketing & M&A. L CAPITAL recently raised USD 1 Bn for its 5th fund dedicated to Asia-Pacific investments in consumer products, lifestyle retail & beauty.

EV/Revenue: 0.4x

July 3rd / Herald Online

INDUSTRY & CLEANTECH

Engineering & Construction

FOSTER WHEELER AG (Switzerland) establishes a new JV with CEFOC (China)

Switzerland-based FOSTER WHEELER AG announced that a subsidiary of its Global Engineering and Construction (E&C) has signed an equity purchase agreement with CEFOC (The Fourth Construction Company Ltd. of China Electronics System Engineering) to purchase a 49% share in its Chinese Design Institute, PECHDI. The co-owned design institute is now a JV named FOSTER WHEELER (HEBEI) ENGINEERING DESIGN COMPANY LIMITED and is licensed to engineer, procure and build process facilities in China under single contracts and will be managed by FOSTER WHEELER. The Swiss group designs and constructs leading-edge processing facilities for the upstream oil and gas, chemicals, environmental, pharmaceuticals, biotechnology and healthcare industries. The JV deal is in line with its growth strategy for China, and allows it to provide full value chain of services and cover client demand in this country to become a leader. The financial terms of the transaction were not disclosed.

July 23rd / Factiva


Water Treatment

UNITED ENVIROTECH (Singapore) to acquire MEMSTAR TECHNOLOGY (Singapore)

UNITED ENVIROTECH (Singapore), a leading membrane-based water treatment provider, plans to acquire MEMSTAR TECHNOLOGY, a manufacturer of fiber membrane for water treatment, for SGD 293 M to become a vertically integrated water solutions provider. UNITED ENVIROTECH will combine its strong engineering & marketing capabilities in the global market with MEMSTAR’s membrane technologies. UNITED ENVIROTECH plans to capture the growth opportunities in China’s environmental & water treatment sector.

EV/Revenue: 5.9x
EV/EBITDA: 12.3x

July 29th / Straits Times


Renewable Energy

HANERGY (China) acquires GLOBAL SOLAR ENERGY (US)

HANERGY, a multinational clean-energy power generator and the world’s number one thin-film PV company, announced that it has completed the equity acquisition of GLOBAL SOLAR ENERGY, Inc. (“GSE”), a manufacturer with the world’s leading copper indium gallium diselenide (CIGS) solar technology based in Tucson, Arizona, USA. China’s investment in renewable energy is ranked first in the world. By 2013, China is expected to surpass Germany and become the world’s largest PV application market.

July 25th / HANERGY Corporate website


Testing, Inspection & Certification

BUREAU VERITAS (France) announces SARGAM LABORATORY PRIVATE LIMITED’s (India) full integration

BUREAU VERITAS’ Consumer Product Services division (BVCPS) acquired SARGAM LABORATORY PRIVATE LIMITED (SLPL) in Chennai, India in 2011. The SARGAM Laboratory has now been completely integrated with BUREAU VERITAS Consumer Product Services (I) Pvt. Ltd. As a result of this acquisition, BVCPS India (SARGAM’s new name) has further strengthened its network of laboratories in 5 major locations in India – Noida, Gurgaon, Bangalore, Tirupur and the latest laboratory facility in Chennai.

July 18th / India Investment News

NEW TECHNOLOGIES

Payment Solutions

India’s ICICI BANK and MOVIDA partner on mobile payments and commerce

MOVIDA, the 50/50 JV between MONITISE and VISA in India, has signed an agreement with ICICI BANK to introduce a mobile payments and commerce service. This new service will enable ICICI BANK payment card holders to pay bills, recharge prepaid airtime and buy cinema tickets from their mobile phones using the MOVIDA technology platform. The service is designed to operate across all mobile networks and any payment card.

July 22nd / Bobsguide


Social Media

PUBLICIS GROUP (France) acquires NET@LK (China)

The worldwide leader in communication, PUBLICIS GROUP acquires NET@LK, a Chinese agency specialized in the social media (focused on marketing influence and brand development on social networks). In line with its objective of becoming a digital leader, PUBLICIS GROUP buys NET@LK, a company based in Shanghai since 2007 and counting 350 experts around China. This comes after the acquisition of LONGTUO, a Chinese firm that allowed PUBLICIS GROUP to deepen their e-commerce expertise.

July 10th / Factiva


E-Media

BAIDU (China) acquires 91 WIRELESS WEBSOFT (China)

The Chinese leading search engine, BAIDU INC, buys all equity interests in smartphone applications distributor 91 WIRELESS WEBSOFT from NETDRAGON for a record of USD 1.9 Bn. This move allows BAIDU to diversify but also to mark China’s biggest M&A in the Internet market after the USD 1 Bn deal of YAHOO with ALIBABA in 2005. BAIDU announced the acquisition of 41% stake in 91 WIRELESS WEBSOFT owned by NETDRAGON (online gaming and phone apps firm in China). The intense competition among internet giants is explained since experts highlighted that China’s online population reached 564 M as of the end of last year 2012, with the number of mobile Internet users hitting 420 M.

EV/Revenue: ~17x

June 16th / Factiva

SMARTSY (France) raises EUR 500 K from 5 business angels

The young Parisian start-up SMARTSY just completed its first round of financing in the amount of EUR 500 K from five French and American business angels. The company has developed a mobile application for visual recognition of objects without barcodes. This new award-winning technology targets various sectors: consumer goods, media, advertising agencies, tourism, etc. The company has already signed trade contracts for more than EUR 10 M, including some with famous brands like RED BULL, WARNER & SEPHORA.
The first fundraiser of a modest amount could precede a larger fall round (PAX Corporate Finance), at least EUR 2 M.

July 24th / Fusacq & Angel.co

TECHSAILOR (Singapore) acquired by TO THE NEW (India)

TECHSAILOR, a digital marketing company, has just been acquired by TO THE NEW, one of India’s leading digital services network for an undisclosed amount. The acquisition was part of an expansion strategy by TO THE NEW to build an integrated digital services ecosystem across Southeast Asia who also plans to invest USD 10 M in the next 2 years to aid future growth in the region.

July 23rd / e27