EURO-ASIA M&A TRENDS
With 3,250 deals worth USD 591.6 Bn, both the number of Asian transactions & their total value reached the highest value according to Mergermarket’s record in 2014. This is spurred by low borrowing interest rates & a private equity sector keen to offload earlier investments as the global economy picked up pace post financial crisis.
- Inbound investment into the region increased for the second consecutive year partly due to cheaper valuations which at 16.6x, EBITDA multiples remained much lower than the previous 10 years’ average of 18.9x.
- China led the region with M&A volume at USD 307.4 Bn, in large part due to activity involving Chinese SOEs engaging in internal restructuring activity & increasingly driven to pursue acquisitions on a global scale.
- A shift in sectors of outbound targets from Energy, Mining & Utilities sector to Technology, Leisure & Transportation
Source: Mergermarket, Dealogic, GCF R&A
FOOD & BEVERAGE
ICL (Israel) to acquire diary proteins company PROLACTAL (Germany)
ICL’s Food Specialties business unit is to acquire PROLACTAL, a European producer of dairy proteins & other ingredients for the F&B industries based in Austria & Germany.
The combined operations will increase ICL’s ability to service its existing clients by offering them a broader selection of texture & stability ingredients.
ICL expects the acquisition to contribute substantial sales & marketing synergies worldwide where there is growing global demand for texture & stability ingredients.
30 January / PR News Wire
MITSUBISHI (Japan) picks up stake in NISSIN FOODS’ India operations
Japanese conglomerate MITSUBISHI has picked up 34% stake in INDO NISSIN FOODS, the Indian unit of Japan’s instant noodle maker with the deal size estimated at around USD 80.3 M.
The deal is part of the larger strategic tie-up between the 2 companies wherein MITSUBISHI would hold 34% voting interest in NISSIN FOODS’s local instant noodle operations in Singapore, India, Thailand & Vietnam.
LAVAZZA wants to raise its non-Italian revenues to 70% from 46% currently, having more than EUR 400 M cash at 2014.
Est. EV: USD 236 M
24 February / Deal Curry
WARBURG (USA) inks first Indonesia deal, forms USD 125 M shopping mall JV
PE firm WARBURG PINCUS will invest USD 125 M to build & develop hypermarket anchored retail malls in Indonesia in a JV with local operator NIRVANA DEVELOPMENT.
WARBURG PINCUS also has the option to invest up to an additional USD 75 M in the JV that will focus on shopping malls across second- & third-tier cities in Indonesia to capitalise on the growth potential driven by rapid urbanisation, emerging consumption & outsized economic growth in Indonesia.
17 February / Deal Street Asia
Fuzhou-based YONGHUI (China) completes sale stake to DAIRY FARM (Hong Kong) to fund expansions
YONGHUI, the Fuzhou-based supermarket chain & one of China’s Fortune 500 companies, has completed the sale of USD 912 M worth of shares (~20%), to DAIRY FARM to fund various expansions including the setting up of an e-commerce platform.
YONGHUI said it aims to use the funds to launch further retail outlets, upgrade its store management system & build a series of logistics distribution centers.
28 January / Reuters
HEALTH & BEAUTY
SANOFI (France) invests USD 15 M to buy 20% stake in APOLLO Hospitals’ (India) diabetes care chain
SANOFI has invested ~USD 15 M to buy 20% stake in APOLLO SUGAR CLINICS, a diabetes care clinic of APOLLO HOSPITALS, the country’s top hospital operator.
APOLLO HOSPITALS runs one of the nation’s largest network of standardised day-to-day healthcare facility which has close to 100 facilities operational across the length & breadth of the country & the Middle East.
EV: ~ USD 90.5 M
30 January / VC Circle
NAVIS (Malaysia) acquires controlling stake in DOMETIC MEDICAL DIVISION (Sweden)
NAVIS has acquired a majority stake in DOMETIC MEDICAL DIVISION, as part of a MBO deal for an undisclosed amount. This deal marks NAVIS’s 1st acquisition in 2015.
DOMETIC MEDICAL DIVISION is a leading manufacturer & distributor of cold-chain equipment for large scale vaccination programmes in emerging markets. It also produces & distributes high-end medical refrigeration equipment sold to hospitals & pharmaceutical companies in developed markets.
25 February / Deal Street Asia
WILLIAM DEMANT (Denmark) proposed to buy 54% of AUDIKA (France) at a 32% premium.
The offer values AUDIKA, a leading network of hearing care providers, at EUR 168 M. If the transaction is successful, WILLIAM DEMANT will make a public offering to the 46% minority.
WILLIAM DEMANT’s intention to acquire AUDIKA is a natural continuation of the existing partnership between the 2 companies. For decades, WILLIAM DEMANT has been a supplier of hearing instruments to AUDIKA.
17 February / Journal du Net
CIPLA (India) picks up 60% stake in JAY PRECISION PHARMA (India) for USD 15 M
CIPLA has acquired 60% of Mumbai-based JAY PRECISION PHARMACEUTICALS, from existing shareholders for INR 960 M (USD 15.4 M).
JAY PRECISION currently supplies respiratory devices to CIPLA with revenues of INR 300 M (USD 4.8 M) at FYE Mar 2014. CIPLA will use it as a platform for development of next generation respiratory devices.
Generic drug-maker CIPLA has been aggressively growing its footprint internationally through acquisitions & JV to increase its market share.
13 February / VC Circle
ENGINEERING & CLEANTECH
Engineering & Construction
CHRYSCAPITAL (India) hikes stake in infrastructure solutions provider PRATIBHA INDUSTRIES (India)
PE firm CHRYSCAPITAL has increased its stake in Mumbai-based infrastructure solutions provider focusing on water management & urban infrastructure space PRATIBHA INDUSTRIES by acquiring additional 3.6% stake for an estimated USD 2.5 M through open market transaction.
In December, PE firm SEQUOIA CAPITAL had exited its investment, while CITIGROUP GLOBAL MARKETS has completely exited the Mumbai-based company.
Est. EV/Sales: 0.6x
Est. EV/ EBITDA: 3.9x
5 February / VC Circle
PAE (Thailand) acquires tap water supplier for USD 2.5 M
PAE PCL, Thailand-based engineering & construction solution provider acquired a 67.8% stake in PPS ENERGY & MARINE for THB 82.1 M (USD 2.5 M).
PPS is a water manufacturer & seller whose main customers are Chiang Mai’s province municipality & industrial estates such as AMATA industrial estate.
The acquisition is part of the company’s long-term investment as it wants to diversify into businesses that provides higher margins & revenue growth.
11 February / Deal Street Asia
SEMBCORP (Singapore) to buy 60% stake in Indian energy firm for SGD 231 M
SEMBCORP INDUSTRIES has through its unit SEMBCORP UTILITIES bought a 60% stake in Indian renewable energy firm GREEN INFRA for about USD 170 M (SGD 231 M).
A PE fund of India’s IDFC will continue to hold the remaining stake in GREEN INFRA, which has a 516 MW operating wind & solar portfolio with presence in 6 Indian states.
The deal will help SEMBCORP triple its renewable energy generation capacity globally to over 1,000 MW.
EV: USD 283 M
11 February / AsiaOne
SUN PHARMA (India) founder to invest USD 290 M in turbine maker SUZLON (India)
Dilip SANGHVI has agreed to buy a 23% stake in Indian wind turbine market SUZLON ENERGY for about USD 290 M for 1 Bn new shares, issued by way of a preferential allotment.
SANGHVI’s investment firm & SUZLON will also form a wind farm JV for the development of 450 MW of wind farms.
The deal will provide SUZLON with liquidity & the cash to tap opportunities in India & growth markets like the United States, China, Brazil, South Africa, Turkey & Mexico.
14 February / Reuters
ALIBABA’s ANT FINANCIAL (China) to buy 25% of India’s ONE97
ANT FINANCIAL, an affiliate of China’s ALIBABA, has agreed to buy 25% of Indian payment services provider ONE97 COMMUNICATIONS, tapping into the country’s smartphone & online industry boom.
The deal values ONE97 at more than USD 2 Bn, making it one of the most valuable startups in the country. ONE97 runs PAYTM, an online platform through which users can shop or pay utility bills, whereas ANT runs PAYTM’s Chinese peer ALIPAY.
EV: USD 2 Bn
5 February / Reuters
Mobile payments startup MOMOE (India) raises USD 1.2 M from IDG, JUNGLE & INDIA QUOTIENT
Bangalore-based mobile payments startup MOMOE TECHNOLOGIES, which operates under the brand MOMOE, has raised INR 74 M (USD 1.2 M) in a seed round of funding.
The startup offers an app-based payment option where a user can pay using a virtual wallet instead of using credit cards or cash when they eat out.
The firm makes money by getting a cut out of the transaction. It has partnerships with around 28 restaurants & pubs currently.
27 February / VC Circle
MAJUVEN (Singapore) leads USD 1.5 M Series A round in VELA (Indonesia)
Indonesian fashion e-commerce retailer & brand partner startup VELA ASIA closed their series A funding worth USD 1.5 M, led by Singaporean early stage & growth stage VC fund MAJUVEN.
The funds will go towards growing its partners’ websites & expanding technology offerings.
VELA ASIA supports brands & manufacturers in selling their wares online, providing end-to-end support from logistics to retail. It engages with partners by building & operating their e-commerce stores in Indonesia.
February 8 / Deal Street Asia
BOOKYMYSHOW (India) buys majority stake in social media analytics EVENTIFIER (India) for over USD 1 M
India’s largest online ticketing portal BOOKMYSHOW has acquired SPACEBOUND WEB LABS operating under the brand EVENTIFIER for over USD 1 M.
The company valued at over USD 2 M, will see the current investors KAE CAPITAL & ACCEL PARTNERS exit the company whom they invested more than INR 30 M (USD 0.5 M) in venture capital.
EVENTIFIER offers software solutions used to consolidate, track & analyze content feed on social media platforms generated during a social media campaign.
10 February / VC Circle
ZOMATO (India) acquires MEKANIST in Turkey
ZOMATO’s shopping spree continues with the acquisition of MEKANIST in Turkey, its 7th acquisition in 6 months.
Just a couple of weeks after entering the US market with the acquisition of URBANSPOON, Indian ZOMATO has acquired Turkey’s restaurant discovery portal for an undisclosed amount. This will increase ZOMATO’s coverage of listed restaurants in Turkey from 27,500 to over 50,000.
29 January / TechCrunch
LUXURY & LIFESTYLE
Furniture & Accessories
SEQUOIA (India) leads investment in home furnishings startup HOMELANE (India)
SEQUOIA CAPITAL has led a USD 4.5 M investment round in 8-month-old HOMELANE, a technology backed vertically integrated interior design & manufacturing provider venture offering customizable, home setup solutions including kitchens, wardrobes & entertainment units.
The funding will be used by HOMEVISTA, the company operating the portal, to expand its presence to cover 10 cities over the next 6 months & getting on board 10 K interior designers across the country.
23 February / Deal Curry
Jewellery & Timepieces
Malaysian PE firm CREADOR acquires 3.2% in India’s PC Jeweller
Malaysia-based PE firm CREADOR has acquired 3.2% stake in India-listed jewellery chain PC JEWELLER for INR 1.43 Bn (USD 23 M) & will raise its stake to 3.5% by investing another INR 124 M (USD 2 M).
PC JEWELLER, which owns over 49 showrooms in 41 cities, plans to add 15 to 20 outlets every year.
PE investors have been increasing their exposure to the local retail jewellery chains. In 2013, venture capital & growth investor SAIF PARTNERS invested USD 13 M in Kolkata-based SENCO GOLD.
25 February / Deal Street Asia
PE investor, INFOSYS Co-founder buys into COFFEE DAY ENTERPRISES (India)
Bengaluru based COFFEE DAY which owns & operates cafes has secured INR 1 Bn (USD 16 M) in the Pre-IPO placement from PE investor Rakesh JHUNJHUNWALA & INFOSYS Co-Founder Nandan NILEKANI valuing it at an estimated INR 62.5 Bn (USD 1 Bn).
Founded in 2008, COFFEE DAY is a privately held company of the CAFE COFFEE DAY GROUP (CCD) where it is the largest coffee retailing player in Asia.
CCD is a division of India’s largest coffee conglomerate, the AMALGAMATED BEAN COFFEE.
Est EV/Sales: 2.2x
20 February / Deal Curry
PEPE JEANS (Spain) passes to M1 GROUP (Lebanon) & L CAPITAL ASIA (Singapore)
Previous owners TORREAL, ARTA CAPITAL & L CAPITAL EUROPE has agreed to sell their stakes of PEPE JEANS GROUP to M1 FASHION, a subsidiary of M1 GROUP & L CAPITAL ASIA. The company’s management team will re-invest alongside M1 FASHION & L CAPITAL ASIA.
The decision of management team to reinvest shows the intention to continue expanding the group’s international presence in the Middle East, Asia, USA & Latin America with the new partners.
12 February / Sports Wear International
Wine & Spirit
French winemaker DOMAINE CHANZY undertakes IPO through SEEDRS crowdfund platform
Only the 2nd company to crowdfund for an IPO, French winemaker DOMAINE CHANZY seeks to raise at least USD 2.9 M on London’s AIM. Investors can invest from USD 15 up using SEEDRS.
This is significant for equity crowdfunding in Europe & allows participation in IPOs for a wider investor base.
The IPO proceeds will help develop distribution networks & create a new wine brand for foreign consumers.
Est EV: EUR 7.9 M
Est EV/Sales: 4.9x
2 February / Company press release
TERRENA (France) takes control of sparkling wine house ACKERMAN (France)
Ancenis-based (in France) cooperative TERRENA has taken control of sparkling wine company ACKERMAN (EUR 66 M in Revenue) in Saumur by increasing its stake from 45% to 66%.
At the same time, LA CAVE DES VIGNERONS DE SAUMUR (wine cooperative with 150 members & 1800 Ha) has increased its stake from 45.6% to 60% in the distribution company ALLIANCE LOIRE (EUR 42 M of Revenue).
The rest of the capital of ACKERMAN & ALLIANCE LOIRE is owned by 6 other wine cooperatives.
2 February / Les Echos