MAY 2014

EURO-ASIA M&A TRENDS

Global M&A was valued at USD 599.1 Bn in Q1 2014, up 33.2% from Q1 2013 (USD 449.6Bn). 2014 was the most active start to the year since 2011 (USD 613.5Bn).

Q1 2014 global M&A increased 5.7% over Q4 2013 (USD 566.6Bn. The average deal size in Q1 2014 was USD 374.4 M, the highest Q1 average since 2009 (USD 381.5M) and 33% greater than in Q1 2013 (USD 281.5M)

Global cross-border activity registered the fourth quarterly increase by value in Q1 2014 with deals valued at USD 255.3 Bn, 7.9% over Q4 2013 (USD 236.7 Bn) and 66.7% higher deal value compared to Q1 2013 (USD 153.3Bn)

Source: GCF team, Dealogic, Mergermarket

FOOD & BEVERAGE

Beverage

DANONE (France) to buy milk formula processing & packaging factories in New-Zealand

France’s DANONE will buy milk formula processing & packaging factories to replace supply lost by terminating contracts with the FONTERRA dairy cooperative in New-Zealand. Through its local subsidiary, NUTRICIA, DANONE has agreed to buy GARDIANS (NZ) drying plant & SUTON GROUP’s (NZ) blending & packing plant.

May 1st / Reuters

BAIN CAPITAL (USA) to buy majority stake in Australia drink bar franchise

BAIN CAPITAL has agreed to acquire a 70% stake in RETAIL ZOO (Australia), the owner of Australian health drink franchise, BOOST JUICE BRANDS from THE RIVERSIDE COMPANY (USA). BAIN will make its investment alongside Janine Allis, one of the RETAIL ZOO’s original founders who reduced her holding in 2010 when RIVERSIDE took a 70% stake for USD 70 M.

EV ~ USD 170 M

May 8th / AVCJ

BRIGHT FOOD (China) continues buying spree with purchase of TNUVA (Israel)

China’s state-owned BRIGHT FOOD has agreed to acquire 56.1% stake in Israel’s largest food company, TNUVA from private equity firm APAX PARTNERS (UK). TNUVA has a leading market share in the Israeli F&B market & a dominant market share in the dairy sector with a net profit of approximately USD 150 M in 2013.

EV ~ USD 2.5 Bn
EV/Revenue: 1.2x
EV/EBITDA~ 10x

May 22nd / The Asset


Food

GIC (Singapore) invests USD 76 M in Philippines canned foods firm

GIC has agreed to invest USD 76 M in Philippines-based canned foods distributor CENTURY CANNING CORPORATION (CCC). The move comes as CCC’s subsidiary, CENTURY PACIFIC FOODS (CNPF), prepares to go public. The investment is structured as a one-year exchangeable loan, extendable by both parties, with an annual coupon of 5%.

May 5th / AVCJ

SPECIALTY RESTAURANTS (USA) may pick up stake in SK RESTAURANTS (India)

SPECIALTY RESTAURANTS LIMITED is planning to pick up stake in celebrity chef Sanjeev Kapoor’s SK RESTAURANTS PRIVATE LIMITED. The enterprise value of the company is pegged at around USD 55 M.

EV~ USD 55 M

May 19th / Deal Curry

EVERSTONE CAPITAL (India) invests in DOMINOS’ Indonesian Franchise

India & Southeast Asia focused PE investor, EVERSTONE, has acquired a controlling 51% stake in Indonesian franchise of DOMINOS PIZZA, PT DOM PIZZA INDONESIA, for USD 20 M. The fund will be used to expand its existing operation of 60 branded pizza outlets in 6 Indonesia cities.

EV ~ USD 39 M

May 23rd / Deal Curry


Wine & Spirits

SUNTORY (Japan) completed acquisition of BEAM (US) for USD 16 Bn

By acquiring BEAM, SUNTORY HOLDINGS become the 3rd largest distributor of premium wine & spirits in the world. The group generates more than 90% of its business in Japan & is seeking overseas growth to make up the shrinking domestic market as the population ages. They acquired all outstanding shares for USD 13.8 Bn (EUR 9.95 Bn), while taking on USD 2 Bn of the US-based firm’s debt.

EV/Revenue: 6.4x

EV/EBITDA: 20x

May 5th / Fusacq

GAJA CAP (India) backed JOHN DISTILLERIES (India) plans acquisitions

GAJA CAPITAL backed JOHN DISTILLERIES, maker of whisky brand Original Choice, is in talks with international players exploring M&A opportunities. The company is aim at entering the premium segments & having a slow phase out from its economy segments. The company expects to grow 25% this fiscal to 12.5 M cases.

May 7th / Deal Curry

USL (India) sells WHYTE & MACKAY to Philippines’ EMPERADOR

UNITED SPIRITS LIMITED has announced the sale of its WHYTE & MACKAY scotch whiskey unit to MPERADOR INC. of Philippines for a consideration of USD 729 M in an all cash deal. EMPERADOR beat LVMH MOET HENNESSY LOUIS VUITTON SA (France), BROWN-FORMAN (USA), GRUPPO CAMPARI (Italy) & ROUSTAM TARIKO (Russia) to the deal.

EV: USD 729 M

EV/EBITDA: 19.3x

May 12th / Deal Curry

HEALTH & BEAUTY

Luxury

PANDORA (Denmark) to raised USD 950 M

Several investors in PANDORA A/S raised about USD 950 M by selling a stake of about 10% in the Danish maker of charm bracelets, capitalizing on its surging share price.

EV ~ USD 9.3 Bn
Revenue (2013): USD 1.65 Bn
EBITDA Margin: 33.2% (USD 547 M)

EV/EBITDA: 17.0x

May 23rd / Business Week


Pharmaceuticals

CANCER GENETICS INC. (USA) buys Genomic Services firm BIOSERVE (India)

NASDAQ listed DNA-based diagnostics focused company CANCER GENETICS INC. has acquired Hyderabad-based BIOSERVE BIOTECHNOLOGIES PRIVATE LIMITED for a consideration of USD 2 M. Post the deal BIOSERVE India will become a wholly owned Cancer Genetics subsidiary to be renamed CANCER GENETICS INDIA (CGI).

EV: USD 2 M

May 16th / Deal Curry

GIC (Singapore) agrees to USD 85 M deal for minority stake in Philippine hospital chain

Singapore sovereign wealth fund GIC has agreed to buy a 14.4% stake in Philippine hospital chain NEPTUNE STORIKA from METRO PACIFIC INVESTMENTS (Philippines). NEPTUNE STORIKA manages a group of 8 hospitals across the Philippines.

EV~ USD 590 M

May 19th / Alt Assets

WARBURG PINCUS (USA) to invest in LAURUS LABS (India)

WARBURG PINCUS will acquire around 25% stake in drug maker, LAURUS LABS PRIVATE LIMITED for approximately USD 140 M, providing exit to PE fund FIDELITY. The funds will be used to build 2 more factories.

EV ~ USD 560 M
Revenue (2012): USD 123 M

May 26th / Economic Times

HONY (China) completes USD 569 M sell down of CSPC PHARMA (China)

HONY CAPITAL has made a partial exit from Chinese generic drugs maker CSPC PHARMACEUTICAL GROUP, generating USD 569 M. The private equity firm’s stake in the business has fallen to 62% from 74%.

EV: USD 4.7 Bn
Revenue (2013): USD 1.3 Bn
EBITDA Margin: 19.5% (USD 253 M)

EV/Revenue: 3.6x

EV/EBITDA: 18.6x

May 28th / AVCJ


Fashion

Online Apparel Retailer BEWAKOOF.COM (India) plans fund raise

BRWAKOOR.COM, an online apparel retailer is planning to raise USD 4 M to expand its portfolio & increase presence across brick-and-mortar retail stores across India. The company seeks to achieve topline of USD 4 M this financial year.

Revenue (2013) ~ USD 4 M

May 6th / Deal Curry

FLIPKART (India) to acquire 100% of MYNTRA Online Shopping (India)

FLIPKART India’s largest multi-brands online retailer, agreed to buy competitor MYNTRA.com for USD 300-330 M as it seeks to widen its lead over Amazon.com Inc. in the country. The purchase give FLIPKART access to MYNTRA’s customers and suppliers. FLIPKART has a valuation of USD 2.5 Bn.

May 22nd May / BoF

ENGINEERING & CLEANTECH

Engineering & Construction

Indonesian conglomerate invests USD 3.5 M in startup ISP (Singapore)

Indonesian energy company DIAN SWASTATIKA SENTOSA (DSS) invested USD 3.5 M into Singapore-based Internet service provider MYREPUBLIC for 5.9% ownership. DSS is part of Indonesian conglomerate SINAR MAS GROUP.
EV ~ USD 59 M
Revenue (2013): USD 4 M

May 21st / Tech in Asia


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

GDF Suez (France) to buy ECOVA (USA) for USD 335 M

French gas giant GDF Suez has agreed to acquire Virginia-based total energy and sustainability consultancy firm ECOVA from AVISTA Capital for USD 335 M in cash. GDF Suez’s acquisition is expected to complete by 1st July.

May 02nd / Capital Finance


Testing Inspection & Certification

GIC (Singapore) buys stake in APPLUS (Spain)

Singapore’s sovereign wealth fund GIC bought a 6.5% stake in Spanish industrial testing firm APPLUS when it went public earlier this month. GIC bought the shares worth about EUR 127 M.

May 16th / The Edge Singapore

NORDIC CAPITAL (Sweden) picks up Sweden processor EUROLINE

European private equity house NORDIC CAPITAL has agreed a dael for a card payment processing business, EUROLINE. The Sweden headquartered company handled USD 15 Bn of transactions last year.

May 28th / ALT Assets

NEW TECHNOLOGIES

E-Commerce

PE backed SNAPDEAL (India) receives additional funding

SNAPDEAL has raised USD 100 M from PREMJI INVEST (India), TEMASEK HOLDINGS ADVISORS INDIA PVT. LTD, BLACKROCK (USA), MYRAID (HK) & TYBOURNE (HK). The company had earlier raised USD 141 M in February from a round led by EBAY (USA).

EV ~ USD 1 Bn
Revenue (2013): USD 500 M
EV/Revenue: 2.0x

May 21st / Deal Curry

ALIBABA (China) to buy SINGPOST (Singapore) stake for SGD 312.5 M to boost e-commerce logistics

A unit of Chinese e-commerce giant ALIBABA GROUP HOLDINGS LTD will buy a minority stake in SINGAPORE POST LTD for SGD 312.5 M to help set up an international e-commerce logistics business. ALIBABA will buy a 10.35% stake in SINGPOST.

EV ~ SGD 3 Bn
Revenue (LTM as of Dec’13): SGD 810 M
EBITDA Margin: 27.3% (SGD 221 M)
EV/Revenue: 3.7x
EV/EBITDA: 13.6x

May 28th / Reuters


E-Media

French Pre Media Agency DIADEIS acquires ALIA CREATIVE (India)

Making its foray into the Asian market, French design & pre-media agency, DIADEIS, has acquired a controlling stake in ALIA CREATIVE CONSULTANTS PVT. LTD. The acquisition will be a phased one which will eventually result in DIADEIS having 100% stake in the coming few months. The initial acquisition value stands at USD 11 M.

May 2nd / Deal Curry