APRIL 2014

Press Review April 2014

EURO-ASIA M&A TRENDS

The Q1 2014 saw the highest quarterly share of incoming M&A into Asia-Pacific* since Q3 2012, deals were valued at USD 23.5 Bn and accounting for 23.3% of overall Asian targeted market M&A in Q1 2014.
The most active sector by value was the Real estate sector with USD 19.7 Bn worth of deals having a 19.4% market share, far from Q1 2013 (USD 1.3Bn).


Outgoing M&A transactions valued at USD 14.4 Bn (drop from 18.1% vs Q1 2013 – USD 17.8 Bn). The lowest valued quarter since Q4 2009 (USD 11.1 Bn).
Buyout value (+212.2%) to reach USD 19.1 Bn during Q1 2014 (USD 6.1 Bn in 2013), the highest value since Q1 2007. China was the most important geographical location for buyout with 29.3% (USD 5.6 Bn) of the global Asia Pacific.
*Asia Pacific: excluding Japan
Source: GCF team and MergerMarket Trend Report

FOOD & BEVERAGE

Beverage

VARUN BEVERAGES (India) to raise funds from IFC (US)

VARUN BEVERAGES LIMITED is raising USD 300 M towards funding organic & inorganic growth opportunities, of which USD 85 M equity investment will be done by IFC & the rest through internal accruals or raising additional equity & debt by the company.

April 1st / Deal Curry

AB INBEV (Belgium) acquired ORIENTAL BREWERY (S.Korea) for EUR 4.2 Bn

IN BEV announces finalization of the OB (KOR) acquisition for EUR 4.2 Bn (3x its 2009 price) from KKR & AFFINITY EQUITY PARTNERS. IN BEV SA is reinforcing its position in the Asia-Pacific zone and OB’s purchase is the start of other deals possibly in China. KKR and Affinity’s sale of OB represents 5x the cash they paid in 2009.

EBITDA: EUR 385 M
EV/EBITDA: 10.9x

April 2nd / Reuters


Food

COFCO (China) takes 51% of NOBLE GROUP (Hong Kong) Agricultural Unit

State-owned COFCO, China’s largest grain trader, & mainland private-equity firm HOPU, agreed to pay USD 1.5 Bn upfront for a majority stake in NOBLE GROUP’s Agribusiness Division and to form a joint venture.

EV: USD 10.7 Bn
EV/EBITDA: 10.4x

April 3rd / The Wall Street Journal

DODSAL GROUP (Dubai) to exit QSR business by selling its 86 franchises

Dubai based DODSAL GROUP is in talks to sell its KFC/PIZZA HUT’s India food business & has appointed boutique investment bank EUROMAX CAPITAL to scout for buyers. The company is valued at around USD 30 M – USD 33 M.

EV: USD 32 M

April 9th / Deal Curry

ETIKA (Malaysia) selling dairies & packaging business

Food Company ETIKA INTERNATIONAL HOLDINGS (Malaysia) has struck a deal for the proposed disposal of its dairies & packaging business & the relevant intellectual property to ASAHI GROUP HOLDINGS SOUTHEAST ASIA (Singapore) for USD 329 M in cash.

Revenue (2013): USD 102 M (+8% vs. 2012)

EBITDA Margin: 23.0%
EV/Revenue: 3.2x
EV/EBITDA: 14.0x

April 11th / Business Times

SYMRISE AG (Germany) offers to buy DIANA GROUP (France) for EUR 1.3 Bn

On 12 April 2014, SYMRISE AG has submitted a binding offer for the acquisition of all the shares in KERISPER SAS (FRA), the holding entity of DIANA GROUP, the French leading supplier of flavors & pet food additives. The deal of EUR 1.3 Bn is expected to close in Q3 2014.

DIANA Group Revenue (2013): EUR 425 M

EBITDA Margin ~ 21.0%

April 13th / Bloomberg

ADM (USA) to keep its coca presses but to sell chocolate business

ARCHER DANIELS MIDLAND CO (ADM) said it will keep its coca presses but still wants to sell its chocolate business after long-running negotiations to sell the money-losing operations to a buyer collapsed.

Revenue (2013): USD 89.7 Bn

EBITDA Margin: 3.7% (USD 3.3 Bn)
EV/Revenue: 0.4x
EV/EBITDA: 9.6x

April 15th / Reuters

LVMH (France) taking over CRYSTAL JADE (SINGAPORE)

Singapore-grown restaurant chain CRYSTAL JADE is being taken over by Paris-based luxury group LVMH MOET HENESSESSY, LOUIS VUITTON’s private equity arm, which has been on a buying spree over the past few months. LVMH will buy over 90% of CRYSTAL JADE.

EV ~ USD 100 M

Revenue (2013): USD 199 M

April 30th/ The Straits Times


Wine & Spirits

China online liquor retailer JIUXIAN.COM raises USD 68 M

JIUXIAN.COM, a Chinese e-commerce site that sells wines & spirits, has raised USD 68 M across two rounds of funding. Return backers include RICH LAND CAPITAL (China), SHENZHEN ORIENTAL FORTUNE CAPITAL (China) & SEQUOIA CAPITAL (US).

April 3rd / AVCJ

CARLSBERG (Denmark) buys majority share of 51% in distributor MAYBEV (Singapore)

CARLSBERG has bought a majority stake of 51% in MAYBEV, the Singaporean exclusive distributor of Japanese beer ASAHI. CARLSBERG portfolio in Singapore will now include brands such as LANSON BCC’s, LANSON CHAMPAGNE, ASAHI & ASAHI-owned whisky NIKKA. This deal will strengthen CARLSBERG’s position in Singapore as one of the foremost alcoholic drink suppliers & boost the unit’s sales, warehousing & distribution capabilities. No financial details were disclosed.

April 9th / Business Times

DIAGEO (UK) offers USD 1.9 Bn to gain control of UNITED SPIRITS (India)

DIAGEO, the world’s biggest spirits maker, has launched a USD 1.9b offer to nearly double its stake in United Spirits, the India’s largest spirits company (from 28.8% to 54.8%).

EV: USD 6.6 Bn

EBITDA Margin: 9%

April 16th / Bloomberg

HEALTH & BEAUTY

Luxury

L CAPITAL (France) invests in VICINI (Italy), an Italian footwear maker

L CAPITAL ASIA has acquired a minority stake in Italian high-end footwear manufacturer VICINI, working in partnership with L CAPITAL MANAGEMENT (France) and another PE firm supported by luxury goods conglomerate LVMH.

Revenue (2013): EUR 115 M

April 8th / AVCJ

SICAR (Luxembourg) backs SLYDE (Switzerland)

Takeover of GL BIJOUX (France) by RENAISSANCE INVESTMENT FUNDS (France)

SICAR has backed SLYDE HOLDING (Swiss luxury watch maker) through its sub-fund GGM High Growth IT Fund. SICAR will invest USD 792 K series A investment in SLYDE HOLDING & the capital raised will be used to accelerate the commercial development as well as to fund future models.

April 8th / PE Hub


Pharmaceuticals

RANBAXY (US) to merge with SUN PHARMA (India)

SUN PHARMACEUTICAL LIMITED is acquiring 100% stake in RANBAXY LABORATORIES LIMITED in an all-stock deal wherein the RANBAXY shareholders will receive 0.8 share of SUN PHARMA for each share of RANBAXY. The USD 4 Bn deal creates the world’s 5th largest specialty generic pharma company.

Revenue (2013): EUR 115 M

April 7th / Deal Curry


Cosmetics & Toiletries

VC-backed cosmetics retailer JUMEIn (China) targets USD 400 M IPO

SEQUOIA CAPITAL (USA) investee JUMEI INTERNATIONAL HOLDING is seeking to raise up to USD 400 M through a NASDAQ IPO. SEQUOIA holds an 18.7% stake in the company while K2 PARTNERS (China) has 10.3%.

Revenue (2013): USD 482.9 M (+116% vs. 2012)

April 14th / AVCJ


Fashion

RITIKA PRIVATE LIMITED (India) secures investment from EVERSTONE (India)

EVERSTONE has made an investment of USD 16 M for an undisclosed minority stake in fashion house RITIKA PRIVATE LIMITED.

April 1st / Deal Curry

ROBERTO CAVALLI (Italy) to be acquired by PERMIRA (UK) for EUR 450M

The Italian designer is in advanced talk to sell its eponymous brand to London buyout firm PERMIRA and will retain 20-40% of the company. ROBERTO CAVALLI has been valuated at EUR 450M – 15x EBITDA 2013 (EUR 25M); That would exceed VERSACE valuation (principal rival) which came at 14.5 x EBITDA but still less than Qatar’s Royal Family paid for VALENTINO (31.5x)from PERMIRA in 2012.

April 17st / BoF

INDUSTRY & CLEANTECH

Water Treatment

TOSHIBA (JAP) acquired UEM (India) for USD 20M valuing UEM INDIA for USD 77m

The acquisition provides turnkey services in the water and wastewater collection, treatment and disposal. The Japanese company will be the second largest shareholder in the Indian company. UEM generate annual revenue of USD 70 M.
EV/Revenue 1.1x

April 11th / LeagllyIndia


Renewable Energy

Fuel Efficiency developer SP3H (France) seals EUR 2.5 M from TRUFFLE CAPITAL (France)

French fuel efficiency company SP3H has raised EUR 2.5 M from technology investor TRUFFLE CAPITAL, a longstanding backer of the company. SP3H develops miniaturized optical sensors for fuel analysis that the company says can reduce emissions & fuel consumption as well as improving reliability.

April 2nd / Alt Assets

KKR (US) to invest in GREENKO (India)

Hyderabad based GREENKO ENERGIES PRIVATE LIMITED is planning to raise USD 100 M from KOHLBERG KRAVIS ROBERTS (US). The AIM listed clean energy leader GREENKO is backed by investors like GIC (Singapore), STANDARD CHARTERED (UK) & also TPG CAPITAL (US).

Revenue (2013): EUR 42.6 M (+4.4% vs. 2012)
EV/Revenue: 12.1x

EV/EBITDA: 12.0x

April 3rd / Deal Curry


Testing Inspection & Certification

PAI (France) & CARLYLE (US) team up for USD 900 M CST deal

PAI PARNTERS & CARLYLE have entered exclusive talks with SCHNEIDER ELECTRIC (France) to acquire the group’s custom sensors & technologies (CST) division for approximately USD 900 M. SCHNEIDER will reinvest USD 100 M to retain a stake of around 30% in CST.
Revenue (2013): EUR 42.6 M (+4.4% vs. 2012)
Revenue (2013): USD 600 M

EV/Revenue: 1.5x

April 4th / Unquote

NEW TECHNOLOGIES

Payment Solutions

INVENTURE (Russia), ALMAZ (Russia) back mobile payments startup 2CAN (Russia)

Venture capital firms INVENTURE PARTNERS, ALMAZ CAPITAL PARTNERS & ESN GROUP (Russia) have invested USD 5 M in Series B capital in Russian mobile payments startup 2CAN. The round brought 2CAN’s fundraising total to USD 7.3 M which will help the company increase its market share & fund the further technical development of the service.

April 1st / Alt Assets

DEBIT SUCCESS (New Zealand) acquired HARLANDS GROUP (UK)

The acquisition was made in order to expand operations internationally. DEBIT SUCCESS part of TRANSACTION SERVICES GROUP is specialized in the delivery of recurring payment solutions for a wide range of industries (22 M of transactions of more than USD 1Bn every year).

April 14th/ LTP


Payment Solutions

TWITTER (US) acquired MESSAGRAPH (France) and SECOND SYNC ( UK – Spain)

With both TWITTER is buying infrastructure to expand presence in Europe, MESSAGRAPH works with broadcasters in France such as CANAL+, M6 and TF1. With SECOND SYNC, TWITTER is adding stronger ties with UK TV industry and nabbing relationship that FACEBOOK has in social TV. Terms of the deals were not disclosed but the two acquired companies will be working out of Twitter’s UK office in London.

April 28th/ Tech Crunch

DUN & BRADSTREET (US) announced acquisition of FLIPTOP (US)

FLIPTOP social data matching business, which matches email addresses to individual profiles that include social network accounts. D&B plans to integrate the acquired technology as an enrichment to its existing database and services. FLIPTOP continues as an independent company, which is now focused on its predictive lead scoring application.

April 28th/ Tech Crunch


E-Media

China’s LETV launches USD 160 M Internet fund

LETV.COM, a Shenzhen-listed online video portal, is seeking to raise up to USD 160 M for an Internet & technology-focused private equity fund. The fund will invest in LETV’s ecosystems, comprising content, internet, and mobile internet, cloud computing & smart devices. It will primarily be focused on buyout & restructuring opportunities.

Revenue (LTM): USD 274 M (+60%)
EBITDA Margin: 21%
EV/Revenue: 18.2x

April 16th / AVCJ

PAI PARTNERS (FR) to acquire EURO MEDIA GROUP (FR)

The French private equity firm made a binding offer to purchase audiovisual provider EURO MEDIA GROUP. The transaction is expected to be finalized in 2nd quarter of the year.

April 24th/ EMG