EURO-ASIA M&A TRENDS
Asia-Pacific (excl. Japan) hit the highest value on record (since 2001) during Q2 with deals valued at USD 173.5 Bn (+53.2% vs. Q1 2014 and +60.4% vs. Q2 2013) in spite of volatility in the region (major elections in India and Indonesia, civil unrest in Thailand & slow growth in China).
- Companies and funds in large Asian Economies (mostly China, Japan, and South Korea) are keen on acquisition in Southeast Asia
- China is still the most targeted country in Asia-Pacific with deals valued at USD 128.1 Bn (+67.4% vs. H1 2013 USD 76.5 Bn)
As a result of the impressive Q2, H1 was the strongest half year on record with deals valued at USD 286.7 Bn, (+56.8% vs. H1 2013).
Source: GCF team & Factset
FOOD & BEVERAGE
GIC & OLYMPUS (Singapore) lead series D funding of USD 106 M for HUAXIA DAIRY (China)
Singapore sovereign wealth fund GIC PRIVATE & OLYMPUS CAPITAL Asia have led a USD 106 M Series D round of investment in China’s HUAXIA DAIRY in a bid to tap in the country’s fast-growing premium dairy segment. GIC will contribute to USD 70 M to the round while OLYMPUS is putting in USD 30 M.
This latest capital injection will help the company to expand operations to Shanghai from its current base in Beijing and improve safety and traceability.
July 3rd / AVCJ
FIDELITY ASIA leads series C funding of USD 13 M for MILK MANTRA (India)
Indian dairy company has raised USD 13 M from, among others, FIDELITY GROWTH PARTNERS and the existing social-venture investor AAVISHKAAR. As part of the deal, FIDELITY GROWTH PARTNERS will be represented at the Board of directors of MILK MANTRA.
The funds will be used to expand its operations across Eastern India in Singapore as well as launch a functional milkshake across key national markets.
July 2nd / VCCircle, AVCJ
DANONE (FR) in talks to sell medical nutrition unit to HOSPIRA (US) for USD 5 Bn
DANONE is in talks to sell its medical nutrition business unit to HOSPIRA (US). The deal would allow the US buyer to move its tax base to Europe.
The unit, which represents 6.3% of the group total revenue, makes feeding tubes and F&B for people with special nutritional needs & has a profit margin above the group average (unit revenue of USD 1.7 Bn in 2013)
The company will use the proceeds from a sale to fund an expansion of its faster-growing baby food & dairy businesses, targeting acquisitions in Asia & Africa.
July 30th / Reuters, FT
FOSUN INTERNATIONAL (Hong-Kong) to buy 20% stake in OSBORNE (Spain)
The firm’s Hong Kong-listed, FOSUN INTERNATIONAL LTD, is buying a 20% stake in OSBORNE, a Spanish ham and wine producer which sells its products in over 50 countries, including China since 2010 but its distribution remains limited to specialty supermarkets.
The aim of the deal is to strengthen OSBORNE brands in China thanks to a local partnership. Premium product consumption in China is a strategic market for OSBORNE with a +20% CAGR.
OSBORNE is FOSUN’s second overseas food deal, after its USD 30 M investment in Malaysian bakery chain SECRET RECIPE this February.
Revenue (FY2013): EUR 232 M
EBITDA (FY2013): EUR 35 M (15%)
July 18th / WSJ
HEALTH & BEAUTY
ARDIAN (France) signed agreement to acquire ADA COSMETICS (Germany)
ARDIAN fund takes 88% stakes from CARLYLE in high quality cosmetic manufacturer ADA. Customer base is essentially made from 5 star Hotels chain, cruise ships and airlines companies. ADA also manufactures licensed products for MNC such as CHOPARD, BULGARI and TRUSSARDI. CARLYLE made a 3x return on its original investment.
Revenue (FY 2014 est.): EUR 53 M
July 24th / Ardian PR
LUYE PHARMA (China) raised USD 764 M through IPO on Hong-Kong SE
CDH Invest., CITIC PE, NEW HORIZON Capital & GIC PRIVATE have made partial exits from LUYE PHARMA GROUP as the Chinese drug maker raised USD 764 M through its Hong Kong IPO.
The company sold 999.6 M shares at USD 0.76 which represent 26.6x forecast EPS for this year.
July 8th / Reuters
YIBAI PHARMA (China) has acquired TIANJIN HORUS (China) for USD 128M
China-based, YIBAI will pay USD 128 M to acquire HORUS C&K Pharma. HORUS reported revenues of USD 32 M and profits of USD 6 M in 2013, pricing the purchase and 4x sales and 21x profit.
However, the company’s business seems to be improving this year. In the first five months of 2014, Horus’ sales (+30%) and profits climbed (+65%).
July 22nd / Current Partnering
FELDA’s life science (Malaysia) branch planned IPO to raise USD 300 M
FELDA Wellness Corp, the life science branch of Malaysia state-owned agri-business conglomerate FELDA is planning to be listed on NASDAQ Stock Exchange to raise USD 300 M by March 2015. In parallel the firm projects to launch new product lines into the Malaysian market by August: in US, South Korea, Australia in January 2015 and Indonesia in March 2015. The listing will take the form of FWC Life Science Inc. comprising of 2 JV with NEOPEUTICS (US) and GORDAGEN (Australia).
July 8th / Reuters
ENGINEERING & CLEANTECH
Engineering & Construction
SEB (France) buyback 30% shares of its Asian subsidiary ASIA FAN (Vietnam)
French leader of small household equipment SEB, which owned 65% (since 2011) of Vietnamese blower manufacturer ASIA FAN announced a buyback of 30% of the remaining shares.
Two months ago SEB Group took 100% control of its Indian subsidiary (owned 55% since 2011) MAHARAJA WHITELINE (Revenue of EUR 21 M in 2011).
The Group’s strategy is to develop a significant exposure & strengthen its position in emerging markets (45% of sales in 2012) & especially in Southeast Asia with a premium positioning for the next years.
July 25th / SEB, Fusacq
PE firm ZOYI CAPITAL (China) invests in machine tool manufacturer QUASER MACHINE TOOLS INC. (Taiwan)
Greater China-focused mid-cap PE firm ZOYI CAPITAL has invested an undisclosed amount in Taiwan-based machine tool producer, QUASER MACHINE TOOLS INC.
Established in 1991, QUASER has cooperation with 30 distributors worldwide. It operates service centres in Switzerland & Greater China. The European market represents 70% of its sales.
July 18th / China Money Network
MITSUBISHI Corp. & Heavy Ind. (Japan) acquired 38.4% stake in METITO (U.A.E)
Japan’s MITSUBISHI Corp. and MITSUBISHI Heavy Industries have acquired a 38.4% stake in water and wastewater project developer METITO Holdings for an undisclosed sum.
Funds will be used to expand firm’s existing schemes, as well as for new schemes in China and African markets including Ghana and Rwanda.
July 8th / Reuters
SUEZ (France) through DEGREMONT takes stakes in EVATHERM (Swiss)
SUEZ ENVIRONNEMENT, through its subsidiary DEGREMONT, announces it has taken shares in EVATHERM, a Swiss engineering company specialised in evaporation and crystallization. The 2 companies will develop together innovative solutions for water savings & zero liquid discharge (ZLD) technologies.
July 23rd / Suez PR
RENEW POWER VENTURES (India) has received USD 140 M from PE firms
Indian firm RENEW POWER VENTURES a leading Indian renewable energy and independent power producer received USD 140M in funding from Asian Development Bank (ADB), Global Environment Fund (GEF), and existing investor Goldman Sachs.
This latest USD 140 M infusion will enable the company to further its growth and scale as RENEW Power aims to double its clean energy portfolio to 1000MW by 2015.
July 3rd / Suez AVCJ, ReNew PR
Buyout of NETS (Norway & Denmark) by ADVENT, BAIN CAPITAL (U.S) and ATP (Denmark) for USD 3.1 Bn
The buyout funds ADVENT INTERNATIONAL (U.S), BAIN CAPITAL (U.S), and the Danish pension funds ATP have closed the acquisition of Nordic card payment company NETS for USD 3.1 Bn. In total, including the PIK note, NETS will bear about 7.5x EBITDA worth of debt, making it the 3rd largest LBO of the year.
ADVENT and BAIN together own another credit-card processor, WORLDPAY, which they bought from ROYAL BANK OF SCOTLAND.
The buyers were in competition with French-based Atos Origins, who owns WORLDLINE.
Last year, NETS handled more than 6 Bn card transactions involving more than 33 M payment cards and 500 K vendors in the Nordic region. In 2012 the company acquired Finnish payments company LUOTTOKUNTA. NETS generates 88% of its Revenue in Denmark & Norway.
EV: USD 3.1 Bn
EV/Revenue (FY2013): 1.9x
EV/EBITDA (FY2013): 12.8x
July 9th / Reuters, Bloomberg
Singapore online grocery REDMART raises USD 23 M in Series B round
REDMART, a Singapore-based online grocery-delivery service has raised a USD 23 M Series B round form existing investors GARENA and Eduardo Saverin as well as new investors VISIONAIRE VENTURES, SOFTBANK VENTURES KOREA and SOFTBANK.
It brings REDMART total funding to USD 27 M. The funding will be used to develop a fresh food delivery service.
SOFTBANK VENTURES KOREA and SOFTBANK are Japanese telecommunications and Internet companies, led by billionaire Masayoshi Son.
VISIONAIRE VENTURES, is a recently established San Francisco-based investment firm backed by Son’s younger brother and venture capitalist, Taizo.
June 13th / Reuters, Tech Crunch, C Net
After raising USD 3.2 M, Singapore incubator FATFISH INTERNET will list in Australia
Singapore incubator FATFISH INTERNET has raised USD 3.2 M and will list in Australia on a market capitalization of USD 24.2 M.
FATFISH INTERNET claims to be an “internet venture” accelerator i.e. it acts as a strategic investor in companies by providing funding, network and resources to increase the growth of a business.
The funds will go towards growing its portfolio companies and providing legal, intellectual property and administration support them.
July 21st / Tech in Asia
Chinese trouser manufacturer BAIYUAN TROUSERS acquired E-Commerce firm SHENZEN GLOBALE-GROW
BAIYUAN has acquired SHENZEN GLOBALE-GROW from SHENZHEN CAPITAL GROUP for USD 166 M.
GLOBALE-GROW sells products made in China directly to over 200 countries. The company has its own professional e-business platform and launches third-part online B2C sales on eBay, Amazon etc.
BAIYUAN TROUSERS operates franchised and proprietary apparel stores in China. It is involved in the wholesaling and retailing of men’s and women’s pants.
SHENZHEN CAPITAL GROUP is a Chinese state-controlled Private Equity fund, investing 30% in Shenzhen & Guangdong province and 70% in the rest of China.
July 18th / ACVJ