MARCH 2015

EURO-ASIA M&A TRENDS

2014 was a record year in terms of venture capital investment activity & 2015 will continue that upward trend according to reports on global VC trends by EY. VC capital activity reaches 13 year high with 2014 seeing USD 87 Bn invested in ~ 6000 deals, the highest annual investment mark since 2000.

  • VC Funding was at its all-time high for the three key VC markets – US, Europe & China as compared to levels seen globally in 2008
  • Consumer services sector received the most investment, driven by large-sized funding deals of mobile-based platform companies such as FLIPKART with the sector attracting USD 29 Bn

Source: Mergermarket, Dealogic, GCF R&A

  • Investments almost tripled to USD 15.5 Bn as compared to USD 4.8 Bn in 2013 with strong activity in the Information Technology & Consumer services sector driving growth
  • Venture Capital poured money into mobile-focused products & start-ups as smartphone user numbers in China continued to grow exponentially.

FOOD & BEVERAGE

Food ingredients

AALST Chocolate (SGP) receives investment from KV ASIA CAPITAL (SGP)

PE firm KV ASIA has invested an undisclosed amount into AALST, a Singapore-based manufacturer of premium chocolate.
AALST, founded in 2003 by Richard LEE (CEO) & Connie KWAN (COO), is the 1st Singaporean producer of chocolate covertures & compound chocolate. It has 5 brands & exports 98% of its products to 40 countries. The clients are mainly Industrials (confectionery, bakery…) & Foodservice.

2 March 2015 / Company press release


Beverage

OSOTSAPA (THA) & LOI HEIN (MYA) form beverage JV

Thailand’s pharmaceutical & consumer products manufacturer OSOTSAPA & Myanmar-based LOI HEIN have formed a JV to penetrate the beverage market in ASEAN.
The JV firm, called OSOTSAPA LOI HEIN, will be overseeing the marketing, sales & distribution of OSOTSAPA’s beverages, including the M-150 & SHARK energy drinks, in Myanmar.
OSOTSPA has a strong brand presence in the energy drink segments in Thailand. Meanwhile, LOI HEIN is the leader of beverage manufacturing & distribution in Myanmar.

16 March 2015 / Deal Street Asia

SAPPE (THA) forms JV for expansion in China

Thailand based manufacturer of functional drinks & fruit juices, SAPPE PCL will be expanding its business to China through a joint venture with local partners.
SAPPE will use funds from its working capital to invest in it through another of its subsidiary SAPPE Hong Kong Co. SAPPE holds 60% stake in SAPPE Hong Kong & Chinese partners hold the rest 40%.
This comes after the company has successfully established its brands in the Indonesian market.

21 March 2015 / Deal Street Asia


Retail

ADITYA BIRLA RETAIL (IND) to buy JUBLIANT’s TOTAL HYPERMARKETS (IND)

ADITYA BIRLA RETAIL is taking over JUBILANT BHARTIA GROUP’s retailing unit housed under TOTAL SUPERSTORE brand name. The tuck-in acquisition would likely see the unit getting merged into the retail arm of ADITYA BIRLA GROUP.
This would be second buyout for AB RETAIL after snapping up TRINETHRA SUPER RETAIL in 2007, which brought the retail brands FABMALL, TRINETHRA & FABCITY under AB RETAIL.

11 March 2015 / Deal Curry

HEALTH & BEAUTY

Cosmetics

ACG MANAGEMENT (USA) invested EUR 2.2 M in SAMPAR (FRA)

PE fund ACG Management, after a very successful fundraising for its SME’s fund (+30%) in 2014, decided to invest EUR 2.2 M in the cosmetic company PARLABO – SAMPAR for an undisclosed stake. Distributed at SEPHORA, SAMPAR will develop its distribution network through pharmacies.
The company is developing the brand SAMPAR since 2004 with SEPHORA as a unique distributor. They have grown 20% annually for the past 5 years with 60% of their sales made up of exports.

18 March 2015 / Fusacq

INTERPARFUMS aims to close the deal by the end of the 1st half of 2015 & would finance it with medium term debt. ROCHAS made USD 46 M turnover (+USD 2 M with fashion royalties) in 2014. INTERPARFUMS has important financial resources when in 2013 BURBERRY paid EUR 181 M to take back fragrances that the French group had developed in his name.

Est: EV/Sales: 2.3x

19 March 2015 / Fusacq


Healthcare

IHH HEALTHCARE (MYS) picks up 51% stake in CONTINENTAL HOSPITAL (IND)

Malaysia’s IHH HEALTHCARE, Asia’s largest hospital operator by stock market value, has acquired a controlling 51% equity stake in CONTINENTAL HOSPITALS for about INR 2.8 Bn (USD 45.4 M)
The deal comes one week after Singapore’s Competition Commission blocked IHH’s plan to buy a local unit of India’s FORTIS HEALTHCARE Ltd for RM 347 M (USD 94 M).
Continental Hospitals is a 750-bed super specialty hospital based in Southern India.

24 March 2015 / AsiaOne


Pharmaceuticals

QUADRIA CAPITAL (SGP) invests in pharma company SOHO GLOBAL HEALTH (IDN)

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

GMR (IND) to buy out MALAYSIA AIRPORTS’ stake in Delhi airport

GMR INFRASTRUCTURE, through GMR Airports, is acquiring the 10% equity stake held by MALAYSIA AIRPORTS in Delhi International Airport (DIAL) for USD 79 M. The deal hikes GMR’s holding to 64%.
The other shareholders includes FRAPORT AG (10%) & AIRPORTS AUTHORITY OF INDIA (26%).
DIAL had been awarded a 30-year concession for the operation, modernisation & phased expansion of INDIRA GANDHI INTERNATIONAL AIRPORT (IGIA) located at Delhi.

25 March 2015 / Deal Curry


Water Treatment

SIIC (SGP) to buy FUDAN WATER (CHN) in a USD 250 M deal

Singapore-listed SIIC ENVIRONMENT will acquire China-based water treatment firm FUDAN WATER through the full acquisition of GLOBAL ENVIROTECH which holds 92% stake of the target company.
The company is valued at USD 250 M, of which USD 77 M is net debt that will be paid off by the acquirer. 10% of the total consideration will be paid in cash & the rest in shares.

PER: ~17.3x

24 March 2015 / Strait Times, Company press release


Renewable Energy

BAIN CAPITAL plans to buy JAPAN WIND DEVELOPMENT in an MBO

PE firm BAIN plans to buy Japan’s 3rd largest wind power company JAPAN WIND DEVELOPMENT through a tender offer in a deal worth up to USD 80 M.
The offer price gives a 25% premium higher than the closing share price as of 20 March 2015 for the Tokyo-listed company.

22 March 2015 / Reuters

NEW TECH

Payment Solutions

Ratan TATA Invests In ALIBABA-backed PAYTM (IND)

Continuing to bet on the digital internet space, TATA SONS Chairman Emeritus, Ratan TATA has invested an undisclosed amount in mobile payment & commerce platform PAYTM.
The deal values the Delhi-based company at USD 1.5 Bn.
ONE97’s flagship product, PAYTM offers mobile wallets that allow consumers to use mobile phones & other handheld devices to pay for purchases. From a mobile payment startup, the company morphed itself into an e-commerce portal to compete with the likes of AMAZON, FLIPKART & SNAPDEAL.

13 March 2015 / Deal Curry

OPTIMAL PAYMENTS (UK) strikes EUR 1.1 Bn digital wallet deal for SKRILL (UK)

OPTIMAL PAYMENTS has expanded its digital wallet with the EUR 1.1 Bn reverse takeover of rival SKRILL in a move that will propel the combined online payments business into the FTSE 250.
SKRILL’s PAYSAFECARD brand is one of the largest pre-paid online voucher providers in Europe, enabling consumers without a bank account or credit card to purchase goods and services online.

Est. EV/Sales: 3.4x
EV/EBITDA: 9.3x

23 March 2015 / Financial Times, Reuters


E-Commerce

SEQUOIA CAPITAL backs GROUPON’s Indian unit

SEQUOIA CAPITAL has reportedly invested USD 20 M in the Indian unit of daily deals & discount site, GROUPON INDIA to ramp its operations in the country.
The envisaged plan leads to providing the Indian unit a greater autonomy & separating it out from its American parent. GROUPON INDIA would be raising 2 more rounds over the next 2 years.
Launched in April 2011, GROUPON (formerly CRAZEAL) features 1 daily deal on the best things to do, see, eat & buy across India. The deals site forayed into India acquiring SO SASTA in February 2011.

11 March 2015 / Deal Curry


Social Media

CROWDFIRE (IND) Secures Series A Round From KALAARI CAPITAL (IND)

CROWDFIRE, a social media management app formerly known as JustUnFollow, has raised USD 2.5 M in Series A round from KALAARI CAPITAL.
Founded in 2010, JustUnFollow was focused on helping users to maintain their social accounts by finding people to follow, unfollow inactive users & “unfollowers”. Now having rebranded to CROWDFIRE, it is aiming to become a social media marketing platform, where one can create a brand for themselves & enable startups to reach their target audience.

10 March 2015 / Deal Curry


Internet

RECRUIT HOLDINGS (JPN) to acquire restaurant booking site QUANDOO (GER) for USD 219 M

Japanese conglomerate, known for its online job hunting site, RECRUIT HOLDINGS has announced the acquisition of German restaurant booking site for USD 219 M, a major European rival to OPENTABLE.
RECRUIT started out in the business of connecting job seekers with employers in 1960, but has since branched out to become a “global matching platform” offering services such as HR, education, travel, housing & dining.

Est: EV/Sales = 48.7x

5 March 2015 / Tech in Asia


SaaS

ODDLE (SGP) raises SGD 1 M from EAST VENTURES (SGP)

ODDLE, a Singapore-based B2B SaaS startup for restaurants to manage the logistics of online orders, deliveries & pick-ups has raised SGD 1 M (USD 718 K) from EAST VENTURES & Holly TAN (former CEO of WARNER MUSIC ASIA PAC).
This new round of funding follows an angel investment in August 2014 & the funds will be used to expand to HK & major cities in Vietnam, Taiwan & Indonesia.

16 March 2015 / Tech in Asia

LUXURY & LIFESTYLE

Furniture & Accessories

LIGHTBOX (IND) backs subscription based furniture rental start-up FURLENCO (IND)

Bengaluru based FURLENCO, a rental furniture subscription venture, has raised USD 6 M in Series A round from LIGHTBOX VENTURES.
Prior to this, it had raised around USD 100 K from a group of angels.
Targeting youths in 25-34 age bracket, FURLENCO competes with Mumbai based RENTMOJO & Gurgaon based RENTEDCH DESIGNS among others in the rental industry, estimated to be worth about INR 70 Bn (USD 1.1 Bn).

24 March 2015 / Deal Curry


Jewellery & Timepieces

CNA (SGP) buys 10% stake in Chinese gold retailer

Engineering firm CNA GROUP reached a deal to acquire 10% stake in Chinese gold retailer JILIN GOLD GROUP (JGG). Transaction details were not disclosed.
JGG is among the top gold retailers in China with over 15 outlets & expanding rapidly, with an online B2B business launching in 2015. Its businesses includes a gold mine, jewellery retailing & franchising, hotels & events management & media advertising agency, throughout China.

19 March 2015 / Deal Street Asia


Fashion

OMAN INDIA JOINT INVESTMENT FUND backs footwear co SSIPL (IND)

OMAN INDIA JOINT VENTURE INVESTMENT FUND (OIJIF), a PE fund sponsored by OMAN’s sovereign wealth fund & India’s largest lender STATE BANK OF INDIA has picked up a minority stake in SSIPL RETAIL.
SSIPL is one of the leading specialty retailers of premium international sports & lifestyle brands in the country in more than 80 cities with over 500 points of sales.

19 March 2015 / VC Circle


Wine & Spirit

QUINTESSENTIAL (UK) acquires LAFRAGETTE & LEGIER (FRA)

QUINTESSENTIAL has acquired L&L from French American VINTNERS, part of the KOPF GROUP based in the US.
L&L is one of France’s leading manufacturers of fine French spirits including fruit liqueurs, Armagnacs & Cognacs, especially the iconic ALIZE range of fruit liqueur spirits.
The multi-million euro investment is part of their on-going strategy to acquire drinks companies complementing its existing portfolio of brands.

2 February / Company press release