OCTOBER 2013

Press Review October 2013

EURO-ASIA M&A TRENDS

The French market for M&A rebounded by 51% over the first 9 months of 2013 to EUR 72.3 Bn. In Q3 2013, total transaction value reached the highest level since the Q2 2011, at EUR 45.5 Bn. This can be explained by important transactions such as the merger of PUBLICIS & OMNICOM, a deal worth EUR 26.5 Bn.
Deal volume in the Asian M&A market remained stable in Q3 2013, with 2058 announcements compared to 2051 in Q2 2013. Moreover, aggregate M&A spending has grown by 6%: from Q2 2013 to Q3 2013, up to USD 126.3 Bn from USD 119.3 Bn. Deal volume in Asia’s key economies showed lower results with India leading a big step backwards from Q2 2013 & declining 21% in Q3 2013; while China remains relatively flat.
– Indian M&A deals: 7% decrease by value & volume in the first 9 months of 2013. Domestic market to remain subdued in the next 6 months, since Indian firms are holding back on capital expenditure plans, waiting for the economy to improve. The value of cross-border M&A transactions increased by 37% to USD 19.3 Bn vs. the first 9 months of 2012, driven by a 179% rise in India’s outbound M&A activity. The energy & power sector accounted for a majority of the M&A involving Indian companies with a 26% share worth USD 6.1 Bn (a 247% increase vs. 2012).
– ASEAN M&A to rise over the next year before the ASEAN Economic Community takes shape in 2015, predicted by CIMB THAI BANK. Thailand was the busiest M&A market in ASEAN from January to July 2013 with USD 14.7 Bn total deal value reported compared to Malaysia’s USD 8.8 Bn & Singapore’s USD 6.7 Bn.

FOOD & BEVERAGE

Beverage

DIANA Group (France) to acquire CONFOCO (UK)

DIANA has reinforced its position in natural ingredients dedicated to the baby food industry with the acquisition of CONFOCO for an undisclosed amount. This integrates distribution & development of products in Europe & Asia.

October 8th / Fusacq & Finactu

DANONE (France) acquires FAN MILK (Denmark) in West Africa

DANONE and ABRAAJ Group (UAE) acquired the leading manufacturer & distributor of frozen dairy products in West Africa. They will respectively own 51% & 49% of FAN MILK.

September 24th / Les Echos & Euroinvestors


Food

TESCO (UK) buying into CHINA RESOURCES (China) for USD 558 M

TESCO is paying CHINA RESOURCES, a state-owned supermarket leader with 3,000 stores, for a 20% stake in a JV to operate the combined retailing businesses which includes TESCO’s 134 Chinese stores. TESCO’s China business recently suffered a pre-tax loss of USD 360 M.

October 2nd / Kansas City Business

EQUISTONE (UK) buys majority in EUROPEENNE DES DESSERTS (France)

The French leader in the frozen baking industry was acquired from CEREA PARTENAIRE & AZULIS Capital. The group proposes to expand its range of products in France and abroad. EQUISTONE will also support an acquisition strategy both in complementary activities and new geographies.

October 22nd / Reuters & PEHub


Wine & Spirits

Chateau QUINTUS (France) acquires Chateau l’ARROSÉE (France)

The DILLON Family announced the acquisition of Chateau L’ARROSÉE by Chateau QUINTUS, through its wholly owned subsidiary QUINTUS SAS. Chateau QUINTUS now comprises 28 hectares of vines & is represented by the family-owned & managed company, DOMAINE CLARENCE DILLON.

October 2nd / PR Newswire Europe

ALLIED BLENDERS (India) in talks to acquire SENTINI’s (India) blending unit

ALLIED BLENDERS & DISTILLERS (ABD), India’s third largest spirit company, is planning to acquire the bottling unit of SENTINI BIOPRODUCTS, for around EUR 36 M in order to boost its in-house production.

October 7th / DealCurry

CHANGYU Wine (China) bought the cognac House ROULLET FRANSAC (France)

One of the 10 largest wine importers, CHANGYU Wine Group, has acquired ROULLET FRANSAC for an undisclosed amount for its exceptional heritage & property assets of 2000 m², which is planned to be turned into a luxury hotel for Chinese tourists.

October 18th / Sudouest & Fusacq


Food Ingredients

DSM (Holland) ups stake in ANDRE PECTIN (China) to 29%

Life & materials sciences company ROYAL DSM NV has raised its stake in texturing ingredients producer YANTAI ANDRE PECTIN. The firm is the sole significant pectin maker in Asia with premier access to the world’s fastest growing specialty food ingredients market.

October 9th / M&A Navigator

HEALTH & BEAUTY

Luxury

CHANGE CAPITAL (UK) bids for LANCEL (France)

HANGE CAPITAL PARTNERS LLP made a non-binding offer for leather products maker LANCEL. This comes after the offer of the Asian conglomerate SWIRE to acquire a minority stake in LANCEL to handle its distribution in Asia.

October 17th / Reuters, M&A Navigator & Capital IQ


Healthcare

MEDI ASSIST (India) gets investment from IDFC Alternative (India)

MEDI ASSIST, a health benefits administrator offering services in wellness, pharmacy programme management, medical network management and benefits administration has received an investment of ~EUR 15 M from IDFC Alternatives for developing its proprietary technology platform further & acquisitions.

October 18th / DealCurry

PE firm ACTIS (UK) invests USD 48 M in SYMBIOTEC PHARMALAB (India)

A significant stake was acquired by ACTIS in SYMBIOTEC, an Indian pharmaceutical specialist producer of steroid-hormone APIs with over 200 customers. The exact stake was not disclosed.

October 22nd / Reuters

SHANGHAI MODERN (China) buys WUHAN ZHONGLIAN (China)

SHANGHAI MODERN Pharmaceutical will acquire a 87% stake for ~EUR 12 M in WUHAN ZHONGLIAN, a pharmaceutical producer & distributor, also well known for its herbal medicine raw materials.

EV/Revenue: 0.7x

October 24th / Reuters


Cosmetics & Toiletries

L’OREAL (France) in exclusive talks to buy 2 SHISEIDO (Japan) brands

Decleor & Carita from SHISEIDO were reputed to be acquired by L’OREAL for EUR 230 M. Both brands had promising international growth with combined annual sales of EUR 100 M (2012).

October 17th / Reuters

DOUGLAS (Germany) to acquire NOCIBE (France)

DOUGLAS is finalizing its acquisition of the perfume & cosmetics retailer NOCIBE. Both companies owned by PE firms ADVENT & CHATERHOUSE have agreed on a valuation of NOCIBE of EUR 500 – 550 M.

EV/Revenue: 1.2x

October 18th / Les Echos & Reuters


Fashion

RELIANCE PE (India) invests in KHADIM (India)

RELIANCE Equity Advisors has invested EUR 11 M in footwear manufacturer & retailer KHADIM India. The funds are to finance its expansion & retire existing debt. The company currently has over 600 retail outlets.
The footwear industry is expected to grow by 25% for the next 10 years & hit USD 60 Bn by 2015.

October 1st / Dealcurry

CALIDA (Switzerland) seeks majority stake in LAFUMA (France)

The sports goods & clothing company LAFUMA received an offer from CALIDA AG. CALIDA holds 15% of the capital & 13% of the voting rights. It plans to make an investment of EUR 35 M & a capital increase of EUR 20 M, to hold a 51% stake. LAFUMA will conduct a 2nd capital increase of EUR 10M by end 2013.

EV/Revenue: 0.4x

October 7th / Le Figaro & Fusacq

PERMIRA (UK) acquires the boot maker DR. MARTENS (UK)

For USD 486 M, PERMIRA will acquire the England-based parent & family owned company R GRIGGS GROUP. DR. MARTENS was created in 1960 & the footwear brand is now sold in 63 countries worldwide.

EV/Revenue: 4.0x
EV/EBITDA: 13.0x

October 25th / Bloomberg & NY Times

INDUSTRY & CLEANTECH

Engineering & Construction

TANJUNG OFFSHORE (Malaysia) to buy stake in GAS GENERATORS (Malaysia)

TANJUNG OFFSHORE Bhd has entered into a share sale agreement with APPOLUSA Sdn Bhd to acquire the remaining 49% equity interest, or 2.34 million shares, in GAS GENERATORS (Malaysia) Sdn Bhd for EUR 7.9 M.
EV/Revenue: 2.0x

October 21st / Capital IQ


Electronics

EDF (France) confirms talks to acquire CITELUM (France)

Power group EDF had started exclusive talks with energy services group DALKIA France to buy CITELUM , a company specializing in public lighting & urban electrical equipment. CITELUM, which made 74% of its 2012 turnover (EUR 153 M) abroad, manages more than 2.3 million lighting points.

October 1st / Reuters


Water Treatment

KHAZANAH NASIONAL (Malaysia) to invest in BEIJING ENT. WATER (China)

The Malaysian state investor will acquire a 5% stake for USD 152 M, in the water treatment unit of the Chinese state infrastructure firm BEIJING ENTERPRISES WATER. The booming water treatment sector in China is highly strategic due to continued urbanization growth.
EV/Revenue: 4.7x

EV/EBITDA: 15.0x

October 4th / The Business Times


Testing, Inspection & Certification

CENTURY DELIGHT (HK) to buy CHINA HEALTH LABS & DIAGNOSTICS (China)

CENTURY DELIGHT INVESTMENT LTD acquired the remaining 28.3% stake in CHINA HEALTH LABS & DIAGNOSTICS LTD for USD 11.06 M. CHINA HEALTH LABS & DIAGNOSTICS provides in-vitro diagnostic equipment under the Biochem Diagnostic & Biochem Life Science brand names for hospitals, research labs, and food safety testing labs to diagnose various forms of diseases.
EV/Sales : 1.1x

EV/EBITDA : 8.8x

October 28th / Capital IQ

NEW TECHNOLOGIES

Payment Solutions

SINGTEL & VISA announce mobile payment alliance

SINGTEL (Singapore) & VISA (USA) have announced an alliance that will enable consumers in Singapore & Australia to pay using smartphones at all VISA payWave points through NFC technology. Payments will not only be limited to these 2 countries for e-commerce transactions online as they can be made using VISA accounts that have been linked to SINGTEL’s mCash accounts.

August 1st / Today Online

PAYPAL (USA) spends USD 800 M on BRAINTREE (USA)

EBAY has announced that it is acquiring BRAINTREE to blend the expertise with its payment division PAYPAL. BRAINTREE helps clients’ method payments through the internet & mobile devices. It process USD 10 Bn in payments annually.

September 30th / Opera

POKKT (India) receives angel investment from JUNGLE VENTURES (Singapore)

POKKT, a mobile payment start-up, plans to utilize the funds to build the team further. JUNGLE VENTURES is Singapore native, global venture capital firm. It makes early stage investments in start-ups from Asia.

October 7th / DealCurry

FASTACASH (Singapore) receives series A funding of USD 3 M

The payment platform company integrates social media with fund transfer services allowing individuals or companies to send value along with digital content through social networks & messaging platforms. JUNGLE VENTURES & SPRING SEEDS CAPITAL participated in this round.

October 7th / PEHub

CREDIT CHINA acquires online third-party payment business

CREDIT CHINA agrees to acquire UCF HUISHENG INVESTMENT (HK) for USD 37 M. CREDIT CHINA would then expand into the online third-party payment services & prepaid card issuance business in the PRC.

October 10th / The Asset


Pay TV

TPG (US) buys into PHOENIX Satellite Television (HK)

TPG Capital entered into a definitive agreement to acquire 12.15% stake in PHOENIX Satellite Television Holdings Ltd. from STAR Group Limited for HKD 1.7 B (EUR 156 M). STAR Entertainment agreed to sell and TPG agreed to purchase 607 M shares held by STAR Entertainment at HKD 2.73 per share.

EV/Revenue: 2.8x

EV/EBITDA: 9.3x

October 10th / The Asset


Social Media

SINGPOST (Singapore) completes acquisition of EK MEDIA (Singapore)

SINGPOST entered into a sale & purchase agreement on September 2nd to acquire 100% of EK MEDIA, a social media agency who operates an online sampling platform in Singapore, for SGD 1.2 M. This acquisition was completed on October 3rd & was funded wholly in cash.

October 3rd / Singapore Business Review & Company Announcement


E-Media

IOMART (UK) acquired BACKUP TECHNOLOGY (UK)

The cloud computing specialist IOMART Group recorded its biggest-ever takeover, buying BACKUP TECHNOLOGY for EUR 27 M. BACKUP TECHNOLOGY is a data firm that stores all digital information for MNCs.

EV/Revenue: 4.4x

EEV/EBITDA: 9.6x

October 2nd / The Herald & Capital IQ