EURO-ASIA M&A TRENDS
In Asia-Pacific, the M&A activity is driven by 2 factors:
1. An increasing risk-appetite in M&A in China, India and Australia across industry sectors.
2. A buying trend in China nurtured by the growth of Internet companies & state reforms. Acquisitions in the Internet sector are the most striking examples: acquisition of YOUKOU TUDOU by ALIBABA GROUP for USD 1.2 Bn & of TENCENT HOLDINGS by JD.com for USD 2 Bn.
There is an ample amount of capital ready to be invested and hungry investors are pushing in SEA as other Asian PE markets falter and regroup because of increased confidence (70% of PE investors anticipate a significant ROI) and high attractiveness (Greater China and SEA rank N1 and N2 in terms of attractiveness).
In Q2FY14, deal volume slightly increased (+129 deals) and aggregate value (+6% vs. Q1) reached USD 170 Bn (representing biggest quarterly total of last 5 quarters). There appears to be an Asia Pacific PE Investment Trend where an increase in deal value & number of new active Asia-Pacific PE firms in the next 2 years should be expected.
Source: GCF team & Factset
FOOD & BEVERAGE
FOODMART (China) to buy 100% of AURIC PACIFIC DAIRY (FOSHAN) for USD 1.16 M
Dairy producer AURIC PACIFIC CHINA LTD, a subsidiary from Singaporean AURIC PACIFIC GROUP LTD (APG), has completed a sale and purchase agreement with FOODMART LTD (China), for the divestment of its entire shareholding in AURIC PACIFIC DAIRY LTD (FOSHAN) comprising of two ordinary fully paid-up shares.
This divestment is driven by the APG’s objective to focus on its core businesses of food manufacturing, distribution and retail.
June 30th / BT Invest, Thomson One
Mr. Ambani & Mr. Vishwanathan (Singapore) to buy 30% of SULA (India) for USD 33.8 M
The Anil Ambani-led RELIANCE GROUP (IND) is teaming up with wine investor VISVIRES INDIA WINERIES, owned by Singapore-based investor Ravi Vishwanathan, as well as Belgian family office VERLINVEST to buy a USD 46.5 M stake in NASHIK VINTNERS, parent of SULA wines.
Ambani is teaming up with Ravi Vishwanathan to buy existing financial investor EVERSTONE PE’s 30% stake for USD 33.8 M.
VERLINVEST, already an investor, will now hold a total 25% stake & the founder, Rajeev Samant and his family will remain with a 45% stake.
This deal values the company at around USD 113 M, providing an exit for early investors EVERSTONE. The transaction also includes a USD 10 M Capital Infusion by the 3 acquiring shareholders.
EV: USD 113 M
EV/Revenue FY13: 3.7x
EV/EBITDA FY13: 24.7x
May 22nd / Economic Time India & Times of India
DIANA (France) to buy 100% of TIANJIN JIANFENG NATURAL (China) for USD 18.6 M
French food ingredient maker DIANA GROUP to buy 100% of TIANJIN JIANFENG NATURAL PRODUCT R&D CO LTD controlled by ZHEJIANG JIANFENG GROUP (54.4% sold for USD 10.11M) for USD 18.6 estimated. DIANA wants to strengthen its position on nutritional health solutions in emerging countries. The target is providing medicinal product extracted from fruits and vegetables.
Terms of the deal undisclosed
EV*/ Revenue 1.24x
June 6th / Diana PR, Reuters, Capital Finance
Caviar HUSO (France) received a 1st tranche of EUR 745 K from its 2nd round of funding
French caviar HUSO closes first tranche of EUR 745K from total second round funding of EUR 4 M. EUR 480 K have been funded by private investors and the other part through the crowd funding platform WISEED.COM. The funds raised will be used to improve the position of its brand CAVIAR DE NEUVIC (EUR 1000-1200/ Kg) as a luxury one and develop the brand internationally.
Revenue (2013): EUR 810 K (1200 Kg vs. 212 Kg in 2012)
EBITDA (2013): EUR 390 K
June 24th / Lawinfrance, CF News
Wine & Spirits
PERNOD RICARD (France) finalized transaction of KENWOOD vineyards (USA)
French group PERNOD RICARD finalized transaction of KENWOOD’s vineyard located in Sonoma valley, California. KENWOOD produces premium wine distributed in US and Canada. PERNOD’s deputy general director commented that deal is not strategic and deal value is less than USD 100M.
The transaction marks PERNOD 2nd foray into California following purchase of MUMM Napa Valley though ALLIED DOMECQ (2005).
May 5th / Fusacq
An En Da (China) acquired controlling stake into CHATEAU TRIANON (France)
An En Da, owner of Chinese winery CHATEAU KINSCHAB and JIN SHA WINERY, has acquired a controlling stake in famous Saint Emilion’s Grand Cru Chateau TRIANON (10ha) from Dominique Hebrard & its associates. Separately Hong-Kong based French hotelier Marc Castagnet has bought a minority stake in Trianon.
Deal Information undisclosed
(Estimated price EUR 1M/ha for Premier cru Saint-Emilion)
May 7th / Deal Curry
HEALTH & BEAUTY
MEIJI SEIKA PHARMA (Japan) to acquire pharmaceutical Company MEDREICH (India)
Japanese company MEIJI SEIKA PHARMA has acquired 100% of Indian drug provider MEDREICH for USD 290 M (75% from MEDREICH’s three promoters and 25% from PE investor TEMASEK).
The decision for MEDREICH sale was driven by the need to become part of a large global conglomerate. Meiji Holdings on its part has informed the Tokyo Stock Exchange (TSE) that its subsidiary MEIJI SEIKA PHARMA acquisition would enable it to obtain cost-competitive manufacturing infrastructure and broaden its sales network of generic drugs in Asia and Africa.
Revenue FY2014 = USD 175
EV/Revenue* = 1,65x
June 12th / The Times of India
JHL BIOTECH (Taiwan) secures USD 35 M in a Series B financing round
Taiwanese biopharmaceutical company JHL BIOTECH has received USD 35 M in a series B financing round led by new investors MILESTONE CAPITAL & a consortium of Taiwan VC & individuals.
Funds will be used toward product development & acceleration of filing for Investigational New Drug application, as well as expanding the existing facility in Taiwan & acquisition of facility in China.
JHL BIOTECH develops, manufactures & distributes affordable biologic medicine.
June 19th / AVCJ
Cosmetics & Toiletries
GIVAUDAN (Switzerland) finalized acquisition of SOLIANCE (France)
Swiss group GIVAUDAN leader in perfume and aromas has finalized acquisition of French SOLIANCE SA specialized in cosmetics’ ingredients. GIVAUDAN with 2013 revenue of EUR 3.6 Bn will fund transaction through own resources.
Terms of the deal undisclosed
June 5th / Fusacq
L’OREAL (France) acquired NYX COSMETICS (USA) from PE firm HCP & COMPANY
The world’s largest cosmetics maker agreed on acquisition of Los-Angeles based NYX COSMETICS. The deal will allow L’OREAL to reinforce its color mass-market leadership in the US. Since January, L’Oreal has acquired facial-mask maker MAGIC HOLDINGS INTERNATIONAL LTD. and spa brands DECLEOR & CARITA, including the 8% stake on NESTLE. L’OREAL will have spent more than USD 5 Bn on deals this year.
Terms of the deal undisclosed
Revenue (2013): USD 73M (+46% vs. 2012)
June 20th / Bloomberg, Newswire
BEAUTE PRESTIGE INTERNATIONAL signed agreement with ZADIG & VOLTAIRE
The manufacturer of perfume BEAUTE PRESTIGE INTERNATIONAL (BPI) subsidiary of SHISEIDO (Japan) and ready-to-wear brand ZADIG & VOLTAIRE signed a 15 year licensing agreement for creation, production and worldwide distribution of Z&V’s Fragrances.
With this license BPI owned by shiseido Group will strengthen its brand portfolio.
June 25th / Fusacq, FM
ENGINEERING & CLEANTECH
Engineering & Construction
SGC (Switzerland) acquired COMMERCIAL AGING SERVICES (USA) & ADVANCED TESTING & ENGINEERING
SGC strengthens and diversifies its Automotive Services in the North American market with the acquisition of COMMERCIAL AGING SERVICES (CAS) and ADVANCED TESTING & ENGINEERING (ATE), two American companies based in Taylor, Michigan.
Acquisition prices were not disclosed.
COMMERCIAL AGING SERVICES (CAS):
– Revenue (FY2013): USD 2 M
ADVANCED TESTING & ENGINEERING (ATE):
– Revenue (FY2013): USD 5.3M
June 2nd / Fusacq, SGS News
OZNER WATER INTERNATIONAL (China) raises USD 147 M in IPO
OZNER WATER INTERNATIONAL, a Chinese provider of water purifiers raised USD 147 M after pricing its shares at USD 0.35 in a listing in Hong Kong.
Proceeds from the IPO will be used to expand the distribution network in China, to double the production capacity by building new factory and to invest in sales & marketing.
Water has been a popular sector in China with investors in recent years, with a market size expected to reach USD 20 Bn by 2017 from USD 9 Bn in 2013.
Revenue (FY2013) = USD 65 M
Net profit margin = 38%
P/E (2014f) = 17.4x
June 11th / Finance In Asia; WSJ
Testing Inspection & Certification
EUR 2.2 M fundraising for French Biotech company PRESTODIAG
PRESTODIAG has raised EUR 2.2 M from the funds AMORCAGE TECHNOLOGIQUE INVESTISSEMENT (managed by CEA INVESTISSEMENT), CAP DECISIF MANAGEMENT, KREIZIG INVEST, and GO BEYOND.
“This additional capital will allow us to accelerate our growth and develop our technological platform.” said Thibaut Mercey, founding CEO. “We are at the edge of launching our first commercial product by the end of 2014, with other launches scheduled in 2015”.
PRESTODIAG has developed an innovative and proprietary optical method (PlasmIATM or “Plasmonic ImmunoAssay”) for detection of bacteria. It allows a simple, direct and rapid detection of pathogens like Salmonella, Listeria or Escherichia coli, especially in food safety applications.
June 13th / Biotech info
Payment platform FASTACASH (Singapore) secures USD 4 M
FASTACASH has secured a USD 4 M million Series B round of funding from JAGDISH CHANRAI, principal of KEWALRAM CHANRIA GROUP, and GOLDEN ORIOLE INVESTMENTS.
The site previously raised USD 4.5 M seed and Series A round from Jungle Ventures, Spring Seeds Capital and Hong Kong-based Funding the Future (FTF).
June 5th / AVCJ
ALIBABA (China) acquires 34% of UCWEB (China)
ALIBABA, already an investor in UCWEB with 66% of the company shares, purchased all remaining shares of the web browser and search company in a cash-and-stock deal. This purchase may create a higher valuation for ALIBABA’s coming US listing.
The purchase price is not disclosed, but UCWEB’s Company value is estimated at more than USD 1.9 Bn. That would value the deal at more than USD 630 M.
500 M quarterly users
65% market share in China, 32% in India
Strong growth in Russia, Vietnam, Indonesia and the US
June 13th / Reuters, Tech Crunch, C Net
INSPIRE VENTURES (Norway-UK) leads USD 10 M round for ACOMMERCE (Thailand)
ACOMMERCE, an e-commerce company raised a series A funding of USD 10.7 M, the largest amount in SEA till date. The funding was organized by ARDENT CAPITAL, the founding investor, followed by INSPIRE VENTURES based in Bangkok. The others funds involved were NTT DOCOMO, SINAR MAS INDONESIA, CYBER AGENT VENTURES, SUMITOMO CORPORATION EQUITY ASIA LTD, ASIA PACIFIC DIGITAL, STRATEGIC ANGEL INVESTORS, JL CAPITAL.
June 10th / Startups FM
Web giant TENCENT (China) invests USD 736 M in online advertiser 58.COM (China)
Chinese Web giant TENCENT HOLDINGS has agreed to buy 20% of 58.COM, the Chinese online classified ads player equivalent to CRAIGSLIST for USD 736 M.
For TENCENT, this deal marks its latest step in its strategy to broaden the range of services linked to social networks.
The transaction sets 58.COM market value at USD 3.7 Bn
June 27th / AVCJ