JUNE 2013

Press Review June 2013

EURO-ASIA M&A TRENDS

According to a survey by Clifford Chance, many of Asian companies are looking to acquire companies in Europe to gain technology and know-how, boost global branding & increase market share. UK, Germany & France have been identified as the top 3 most attractive M&A targets in Europe. Global M&A activity for H1 2013 is estimated at USD 1.2 T.
Vietnam’s Q1 2013 M&A market recorded 14 deals worth USD 676 M. Of these, 10 deals involved foreign entities. The most prominent deal was KKR’s USD 200 M investment into MASAN CONSUMER, a leading diversified FMCG company. Vietnam’s M&A market is projected to remain lively in the future given the expected shift from FDI to M&A. Foreign F&B giants such as ASAHI, SAPPORO & KIRIN of Japan, SAN MIGUEL of Philippines and THAI BEER of Thailand are said to have plans to boost investment in Vietnam via M&A.

FOOD & BEVERAGE

Beverage

TATA COFFEE (India) plans for overseas acquisitions

TATA COFFEE, producer of instant coffee & roasted coffee beans, will invest more than USD 52 M in 3 years to increase production capacity partly through acquisitions. As it already has 2 coffee extraction plants in India, it will look for acquisitions outside India. The company is looking to move out of spray-dried instant coffee & push into freeze-dried & agglomerated instant coffee which provides 40-50% higher margins vs. the low-end category. It also plans to enter Southeast Asia immediately & Europe by September this year.

LTM June 2013 Revenue: SDD 556M (+20.6% YoY)
EBITDA margin: +19.6%

June 18th / Live Mint


Food

CHINA MENGNIU DAIRY acquires 24% stake in YASHILI (China) for USD 387 M

CHINA MENGNIU DAIRY CO, China’s largest milk producer, acquired 24% stake in YASHILI INTERNATIONAL HOLDINGS LTD, a milk producer specialized in paediatric formulas, for USD 387 M from the CARLYLE GROUP. CHINA MENGNIU DAIRY aims at increasing its market share in the baby milk segment. This transaction is part of a bid to acquire a majority interest in YASHILI, expected to reach 2.7 Bn shares (75% stake) for USD 1.6 Bn in total.

EV/Revenue: 2.1x
EV/EBITDA: 11.8x

June 19th / AVJC

Dairy group SODIAAL (France) & 3A (France) intend to merge

The two French dairy groups intend to merge, which will give birth to a group with an annual sales of more than EUR 5 Bn. SODIAAL (EUR 4.4 Bn sales), the 5th dairy group in Europe, owns famous brands like ENTREMONT, YOPLAIT, while 3A (~ EUR 700 M sales), based in Toulouse, owns the brands like YEO & BONILAIT.

June 25th / Fusaq


Wine & Spirits

LEGRAND FILLES ET FILS (France) acquired by Japanese investor

Japanese businessman Amane NAKASHIMA has acquired ~80% stake for EUR 16 M in the parent company EVERGET of French wine retailer and trader LEGRAND FILLES ET FILS. NAKASHIMA family already distributes French wines in Japan and owns a small vineyard in New Zealand. EVERGET had been looking for a strategic partner in order to pursue its development, notably in Asia.

EV/Revenue: 0.8x

June 27th / Just-Drinks


Food Ingredients

BARRY CALLEBAUT (Switzerland) finalized its acquisition of coco ingredients division of PETRA FOODS (Singapore)

The BARRY CALLEBAUT group has finalized its acquisition of coco ingredient division of PETRA FOODS. The transaction price is estimated at about EUR 658 M. The transaction will make BARRY CALLEBAUT the largest manufacturer of coco and chocolate in the world, with an annual revenue of about EUR 5 Bn.

EV/Revenue: 0.7x
EV/EBITDA: 14.3x

June 30th / BARRY CALLEBAUT company site

HEALTH & BEAUTY

Luxury

SOHU boss Charles ZHANG (China) buys China distribution rights of SUNSEEKER yachts (UK)

ZHANG, one of the mainland’s richest men, recently spent tens of millions of US dollars to buy the sales and distribution rights in China of SUNSEEKER (founded in 1968, the largest yacht maker in Britain). ZHANG’s deal with SUNSEEKER came around the same time that DALIAN WANDA, a Chinese property developer run by one of the mainland’s richest men, WANG Jianlin, agreed to pay nearly HK$4 Bn for 91.8% of SUNSEEKER.

June 26th / South China Morning Post


Healthcare

DEG (Germany) invests USD 12 M in IVY HOSPITAL (India)

DEG, an investor of private companies in developing & transition countries, invested USD 12 M in IVY HOSPITAL (IND), a super specialty hospital chain which achieved NABH accreditation, the highest seal of quality certification for hospitals in India. The funds will be used to set up more hospitals in northern India. The investment marked DEG’s first foray into healthcare in India. Its portfolio in India stands at over EUR 500 M across 50 companies.

June 11th / Deal Curry

YIBAI Pharma (China) subsidiary to acquire BAIXIANG Medicine (China)

Guizhou YIBAI Pharmaceutical Co Ltd’s wholly-owned subsidiary plans to acquire a 100% stake in Guizhou BAIXIANG Medicine Co Ltd for EUR 63 M. Since 2010, YIBAI Pharmaceutical made several acquisitions including NANZHAO Pharmaceutical, MINZU Pharmaceutical & AIDE Pharmaceutical. With the latest BAIXIANG Medicine acquisition, YIBAI wants to expand its product portfolio.

EV/Revenue: 2.8x

June 17th / China Business Wire


Cosmetics & Toiletries

CAVINKARE (India) raises USD 44 M from CHRYSCAPITAL (India)

CAVINKARE, an FMCG player, raised USD 44 M from CHRYSCAPITAL, a PE firm. CAVINKARE plans to use the funds to expand its existing brand portfolio of shampoos, hair colours, deodorants & food products. It will also expand its beauty salon business, with plans to set up another 350 salons by 2015.

June 4th / Deal Curry

Indian FMCGs look for foreign acquisitions

Indian FMCGs are looking for acquisitions in overseas markets to extend their global presence & product portfolio. Overseas acquisitions are believed to provide benefits including cross-selling opportunities & exchange of knowledge, technical know-how & best business practices. GODREJ CONSUMER PRODUCTS is looking for acquisitions in Asia, Africa & South America in household & personal care categories while WIPRO CONSUMER CARE is eyeing Indonesia & China specifically.

June 9th / Financial Express


Fashion

Italian entrepreneur takes control of LA PERLA (Italy)

An Italian businessman Silvio SCAGLIA who founded several technology firms has won control of the struggling Italian LA PERLA luxury lingerie and beachwear brand, beating out Italian hosiery and bathing suit maker CALZEDONIA. SCAGLIA’s SMS Finance holding company made the winning bid of EUR 69 M, pledging to maintain all 800 employees and to invest at least EUR 110 M to relaunch the brand. His goal is to double sales in a year, revamp the retail network and insert LA PERLA into the fashion network.

June 4th / NBC News

LES GALERIES LAFAYETTE (France) opened its first store in Asia

LES GALERIES LAFAYETTE opened its first store in Indonesia, showing Indonesia is becoming new Eldorado of Luxury goods in Asia. Last year the GDP growth of Indonesia is 6%, the highest among the G20 countries. International brands like LVMH, GUCCI, PRADA & CHANEL continue to open stores in the 100+ commercial centers in the country, especially the capital Jakarta. LES GALERIES LAFAYETTE will open its next store in Beijing this September, followed by Turkey & Qatar in 2015.

June 13th / Les Echos

INDUSTRY & CLEANTECH

Engineering & Construction

HOCHTIEF (Germany) announces sale of services business to SPIE (France)

HOCHTIEF Solutions announced they have sold the Service Solutions business line, in which the company’s facility and energy management activities are pooled, to SPIE S.A. for about EUR 250 M. With the transaction, almost 6,000 employees of the business line will switch to SPIE. The business line generates an annual sale of about EUR 700 M.

EV/Revenue: 0.4x

June 28th / HOCHTIEF company site


Water Treatment

LI Ka-shing’s Company (HK) acquired Dutch waste management business AVR

VAN GANSEWINKEL GROEP sells subsidiary AVR – Energy from Waste to a consortium led by CHEUNG KONG INFRASTRUCTURE (CKI). CKI is a part of the CHEUNG KONG GROUP and listed on the Hong Kong stock exchange. The deal comes after CKI bought New Zealand waste management business ENVIROWASTE for NZ$ 501 M in January from a private-equity firm. LI Ka-shing, the Hong Kong billionaire continues to acquire infrastructure and utility assets in developed markets.

EV/Revenue: 3.5x
EV/EBITDA: 8.7x

June 17th / Wall Street Journal


Renewable Energy

RENEW POWER (India) raised USD 135 M from GOLDMAN SACHS (US)

RENEW WIND POWER raised USD 135 M from GOLDMAN SACHS (US), bringing the total investment of the US bank to USD 335 M. The company plans to develop 1,000 MW of renewable energy projects by 2015. India is projected to receive ~ USD 22 Bn renewable energy investments for the next 5 years due to current production shortages.

June 5th / Deal Curry

FORTUM (Finland) acquired a solar project in India

FORTUM, an energy generation company, bought a PV solar power plant in Rajasthan for an undisclosed amount. The power plant’s peak capacity is 5.4 MW and its production around 9 gigawatt/hour. FORTUM’s plan is to invest some millions of euros in developing its PV solar competence & operations in India.

June 12th / Deal Curry


Testing, Inspection & Certification

SGS (Switzerland) acquired Qingdao YUANSHUN Automotive Services (China)

SGS acquired Qingdao YUANSHUN Automotive Services Co. Ltd., based in Qingdao, China. YUANSHUN is the leading vehicle inspection company in Qingdao, Shandong province, the third largest province in China in terms of GDP. According to the CEO, this acquisition represents the first steps in its Automotive strategy to enter the growing Chinese vehicle inspection market. The financial detail is not disclosed.

June 17th / SGS Company

NEW TECHNOLOGIES

Payment Solutions

IDG (China) invests USD 4 M in CHINA WEIPASS Series A round

IDG CAPITAL PARTNERS, a joint investment venture between media giant INTERNATIONAL DATA GROUP & ACCEL PARTNERS, invested USD 4 M in Series A round of WEIPASS, a smartphone app for payment verification. WEIPASS app allows users to receive e-coupons from merchants. Merchant can scan the QR Code to register customers or redeem e-coupons stored in the app. WEIPASS has established a partnership with SINA CORP’s payment services & GAOPENG, a JV between GROUPON & TENCENT with over 10,000 merchant partners.

EV/Revenue: 4.2x
EV/EBITDA: 10x

June 25th / Telegraph UK


Pay TV

VODAFONE’s (UK) German acquisition hints at move into pay-TV sector

The German cable firm KABEL DEUTSCHLAND accepted the EUR 7.7 Bn bid from VODAFONE. VODAFONE’s move for KABEL DEUTSCHLAND, the British firm’s biggest acquisition in 13 years, is especially important as it marks a strategic shift. The FTSE 100 giant is now set to become a ‘triple play’ provider, offering pay-TV and fixed-line broadband as well as mobile services.

EV/Revenue: 4.2x
EV/EBITDA: 10x

June 25th / Telegraph UK


Social Media

PARTA (Canada/France) completes acquisition of French social media tech company

PARTA DIALOGUE, a social media optimization company, announced that it has acquired SENSE FAB, which is operating as MYTWATCH. The latter company is a private e-intelligence and social marketing technology firm. PARTA originally announced the acquisition of the Paris-based company on January 31 of this year, but it was just now finalized. The initial purchase price is listed as 1,037,166 common shares for 25 cents per share with a cash consideration of EUR 19,500.

EV/Revenue: 2.6x

June 20th / MergerTech


E-Media

FLITE (US) raises USD 9 M from IRIS CAPITAL (France)

FLITE, an online advertising company, raised USD 9 M in funding from IRIS CAPITAL, a PE & VC firm which was formed as a JV between PUBLICIS GROUPE & ORANGE TELECOM. FLITE’s technology enables advertisers to incorporate new contents into their display ads on a real-time basis. This technology will be used by PUBLICIS GROUPE’s agencies. FLITE has previously raised more than USD 27 M.

June 12th / Forbes