OCTOBER 2014

EURO-ASIA M&A TRENDS

Asia (excl. Japan) surpassed all other annual records for Q1-Q3 with deals valued at USD 427 Bn (+3.6% from full year 2013) in spite of economic uncertainties in the region (new political leaders in India and Indonesia & pro-democracy protests in Hong Kong).

  • Attention from European companies targeting Asia looks to be slowing with a drop in value for the last two consecutive quarters but the YTD value from the region (USD 30.6 Bn) has already reached the highest annual total since 2011.
  • China is still the most targeted country in Asia with deals valued at USD 261.7 Bn from 2,789 deals.
  • Q1-Q3 2014 also saw an increase of extra 351 deals as compared to Q1-Q3 2013

In addition to the increased deal count, Q1-Q3 2014 had the highest deal size on record with USD 220.9 M (+15.3% vs. 2013).

Source: GCF Research & Analysis, Thomson Reuters, Merger Market

FOOD & BEVERAGE

Dairy

DANONE (France) to buy 25% of YASHILI (China) for USD 550 M

French dairy giant DANONE will buy a 25% stake in Chinese milk powder maker YASHILI for USD 550 M. This deal will help DANONE increase its footprint in China’s fast-growing dairy market.
CHINA MENGNIU DAIRY, in which DANONE holds a 10% stake, acquired stake YASHILI in June 2013 for USD 1.5 Bn, and will see its stake in YASHILI diluted to 51% from 68%.

October 30th / Reuters, Capital IQ


Food Ingredients

Seed group VILMORIN (France) to enter Vietnam in emerging market push

French seed maker VILMORIN is to become the first international industry player with a direct presence in Vietnam through the acquisition of local firm TROPDICORP as part of its push into emerging markets.
TROPDICORP, based in Ho Chi Minh City, had sales of USD 6 M in 2013 and is 1 of 3 firms that together account for nearly 50% of the vegetable seed market worth USD 45 M.
The deal follows the VILMORIN’s acquisition by taking a stake in Zimbabwe’s SEED CO and acquired Thailand-based SEED ASIA, 2 deals focused on maize.

Est EV: USD 12 M
Est EV/Sales: 2.0x

October 8th / Reuters


Beverage

Thailand’s SERM SUK to sell EST cola brand for USD 48 M

SERM SUK, the Thailand-based soft drinks producer, has agreed to sell the EST cola brand to THAIBEV subsidiary INTERNATIONAL BEVERAGE HOLDINGS for USD 48 M.
The deal was made in order to leverage the financial and global marketing resources of the THAIBEV GROUP to support the expansion of the ‘EST’ brand into the international market.

October 28th / Thai PR


Retail

ASPADA (India) to invest USD 2 M in fresh food supply chain firm ALLFRESH (India)

VC firm ASPADA INVESTMENT has committed to invest over USD 2 M in New Delhi-based fresh fruit supply chain company ALLFRESH SUPPLY MANAGEMENT PVT LTD.
Founded in 2013, ALLFRESH operates across the entire fresh fruit value chain from farm extension services for small-holder farmers to managing the entire post-harvest controlled atmosphere supply chain in apple, citrus crops and other high value fruits.

October 1st / VC Circle

HEALTH & BEAUTY

Cosmetics

CHANEL (France) will sell BOURJOIS to COTY (USA)

COTY is negotiating with CHANEL to acquire its brand BOURJOIS in a stock-trading deal. CHANEL will hold 4.2% of COTY’s capital.
The deal values BOURJOIS (based on COTY’s closing rate) at EUR 190 M. BOURJOIS brand could help boost COTY in markets including EU, Middle East & Asia, where COTY is seeking to bolster its presence.

EV (2013): EUR 190 M
EV/Sales: 0.73x

October 6th / Le Figaro, Reuters

ESTÉE LAUDER COMPANIES (USA) to acquire fragrance brand LE LABO (France)

Cosmetic & Perfume maker ESTÉE LAUDER has agreed to acquire French upscale fragrance brand LE LABO to complement its portfolio of beauty brands.

October 15th / NASDAQ.com


Health

LEGEND CAPITAL (China) makes investments in personal care product maker WEIMEIZI (China)

Through its Portuguese insurance subsidiary FIDELIDADE, FOSUN INTERNATIONAL has won the takeover battle for ESPIRITO SANTO SAUDE with an offer of EUR 460 M for 96.07% stake.
ESPIRITO SANTO SAUDE owns one of Lisbon’s largest private hospitals, along with 7 other hospitals, 7 clinics and 2 senior care institutions. It also manages a public hospital.

Est. EV: EUR 663 M
EV/Revenue: 1.7x
EV/EBITDA: 10.6x

October 16th / Finance in Asia, SCMP, Capital IQ

VIRBAC (France) agrees to acquire 2 veterinary dog’s brands from ELI LILLY (USA)

On Monday 27th, VIRBAC announced the signature of an agreement to buy US License of Sentinel® Flavor Tabs & Sentinel® Spectrum from ELI LILLY. The brands addition will strengthen VIRBAC penetration in USA.
Revenue of assets reached EUR 75-83 M. Terms of the agreement have not been disclosed but analysts said it would value the 2 former ELI LILLY’s brands at EUR 200 M.

Est. EV/Revenue: 2.5x

October 29th / Les Echos

TEMASEK (Singapore) to invest in INTAS PHARMA (India)

TEMASEK is going to purchase a 10.16% in Indian Pharmaceutical company INTAS PHARMA for over USD 160 M. This deal marks a partial exit of CHRYSCAPITAL.
CHRYSCAPITAL had bought out ICICI VENTURES’ 12.5% in INTAS for INR 500 M (c. USD 8 M) in 2006, with valuation of the company around INR 4 B (c. USD 65 M). It re-invested in INTAS in 2012 by developing INR 3 B (USD 49 M) as Series-B funding.

September 16th / Deal curry, The Economic Times


Pharmaceuticals

B BRAUN (Germany) makes delisting offer for AHLCON PARENTALS (India)

German healthcare products major B BRAUN, which acquired majority stake in public-listed formulations and healthcare consumables firm AHLCON PARENTERALS 2 years ago, has now made a delisting offer.
It has sought to buy the 25% equity held by the public shareholders in the company at a floor price of USD 4.4 cents a share which is half the current market price.
At the floor price, BRAUN would need to spend approximately USD 8 M to complete the buyout.
New Delhi-based AHLCON is engaged in manufacturing and selling pharmaceutical intravenous (IV) fluids and ophthalmic ear drops in India.

Est EV: USD 32 M
EV/Sales: 1.7x
EV/EBITDA: 7.8x

October 17th / VC Circle

ENGINEERING & CLEANTECH

Engineering & Construction

PNC INFRATECH (India) files for up to USD 87 M IPO, JACOB BALLAS (India) to part exit

Agra-based infrastructure firm PNC INFRATECH LTD (PNC), which specialises in construction of highways, bridges, flyovers and airport runways, has filed for its IPO to raise as much as USD 87 M, part of which would go to private equity investor JACOB BALLAS.
Mid-market PE investor JACOB BALLAS had invested in the firm three years ago and is selling a little over a fifth of its holding and may clock 1.5x in returns on its investment.

September 29th / VC Circle


Water Treatment

UNITED ENVIROTECH (China) forms JV company with Chinese SOE XINGRONG GROUP (China)

Mainboard-listed UNITED ENVIROTECH LIMITED has formed a 49%/51% JV with CHENGDU XINGRONG CO (XRTZ) with a paid-up capital of USD 10 M in Sichuan, China.
XRTZ is a state-owned enterprise with a market capitalization of USD 3.5 Bn and owns about 5 M m3/day of water treatment concessions.
The new JV company will provide Engineering, Procurement and Construction (EPC) services using UEL’s membrane technologies and membrane products, as well as to undertake investments in water treatment projects in Western China.

October 13th/ Singapore Business Review

KURITA (Japan) to buy ICL’s (Israel) water treatment, chemicals arm for USD 317 M

Japan’s KURITA WATER INDUSTRIES LTD agreed to buy APW, the water treatment business owned by Israel-based manufacturer ICL ISRAEL CHEMICAL LTD for USD 317 M.
The transaction, expected to be completed by the end of the year, will help KURITA expand into European markets and also fits with ICL’s plan to spin off non-core assets.
APW, the aluminium, paper chemicals and water treatment business that was part of ICL’s Performance Products arm, is based in Ludwigshafen and Dusseldorf, Germany.

EV (2013): USD 317 M
EV / Sales (2013): 1.7x

October 26th / Reuters


Renewable Energy

SOLARARISE (India) raising over USD 33 M from KOTAK PE’s infra fund, GEEREF

Gurgaon-based SOLARARISE is raising over USD 32.5 M from CORE INFRASTRUCTURE INDIA FUND PTE LTD. (CIIF) and GLOBAL ENERGY EFFICIENCY AND RENEWABLE ENERGY FUND (GEEREF) to invest in solar PV projects in India.
This is the first tranche of total proposed fundraising worth around USD 100 M. It aims to raise the total in three tranches, which would make it one of the most heavily funded players in the Indian solar power sector.

October 9th / VC Circle

GREENKO (India) raises USD 125 M from EIG GLOBAL ENERGY PARTNERS (USA)

Renewable energy company GREENKO has raised USD 125 M from Washington-based EIG GLOBAL ENERGY PARTNERS. GREENKO, which is listed on AIM market in London plans to use the funds to refinance its bank facility of USD 70 M due in January 2015 and to support the development of its renewable power projects.
The investment by EIG is through a long term 6-year instrument with a cash coupon of 5% per annum and a PIK coupon of 6% payable at maturity with an option to convert this into GREENKO shares.

October 21st / AVCJ, Bloomberg

NEW TECHNOLOGIES

Social Media

UK’s NEW CALL TELECOM buys 70% stake in chat app NIMBUZZ (India) for around USD 175 M

SUK-based privately held communication services provider NEW CALL TELECOM has acquired a 70% stake in instant messaging and mobile calling application firm NIMBUZZ for around USD 175 M.
NIMBUZZ had previously raised VC funding from NASPERS and MANGROVE CAPITAL.
NIMBUZZ provides a single tool for making voice and P2P video calls, sending instant messages and sharing data via all major communications platforms for free.

October 28th / VC Circle


Payment Solutions

PayU INDIA acquires EASHMART (India)

NASPERS-owned PayU INDIA has acquired mobile-based payments app EASHMART. As part of the deal, the EASHMART team will join PayU INDIA.
The deal value has not been disclosed.

October 13th / Tech in Asia, VC Circle


E-Commerce

Online marketplace TOKOPEDIA (Indonesia) raised USD 100 M from SOFTBANK (Japan) and SEQUOIA (USA)

TOKOPEDIA announced a USD 100 M financing round led by Japanese conglomerate SOFTBANK. SEQUOIA acts as a follow-on investor, in its first ever investment in Indonesia.

October 22nd / Tech in Asia

LUXURY & LIFESTYLE

Furniture & Accessories

Local interior fit-out provider SERRANO (Singapore) launches IPO

SERRANO, a home grown provider of interior fit-out solutions for property developments and refurbishment projects has launched its initial public offering, offering 30 M shares priced at SGD 23 cents.
It expects to raise SGD 6.9 M from the share sale and plans to use the proceeds partly to expand in Southeast Asia.
SERRANO LIMITED’s executive chairman and CEO, Mr Winston Chia, said the company is looking to expand in Myanmar, Vietnam and Thailand, where it already has a presence.

EV: SGD 34.5 M
EV/Sales: 0.42x

October 15th / Channel News Asia


Jewellery & Timepieces

Buyout group ADVENT (USA) sells CHRIST Jewellery stores to 3I (UK)

Buyout group ADVENT has sold a unit of its German books-to-cosmetics retailer DOUGLAS to rival private equity firm 3I, making headway in a revamp ahead of a planned exit from the investment.
ADVENT and the KREKE family, which owns 20% of the group, sold their CHRIST jewellery stores which have annual revenue of around EUR 400 M and employ about 2,400 staff in 220 shops to 3I.
3I is investing EUR 214 M in equity, while the deal values the CHRIST enterprise at EUR 400 M including debt.

Est EV: EUR 400 M
EV/Sales: 1.0x

October 27th/ PE Hub

WARBURG PINCUS (USA) set to invest USD 200 M in KALYAN JEWELLERS (India)

PE firm WARBURG PINCUS has agreed to buy a significant minority stake in KALYAN JEWELLERS for USD 200 M.
The jewelry manufacturer plans to use the capital for further expansion.

October 20th / Reuters


Fashion

SHANGHAI LA CHAPELLE FASHION (China) raises USD 219 M in an IPO in Hong Kong

The women’s wear and apparel company, in which GOLDMAN SACHS has a minority stake raised USD 219 M in a Hong Kong IPO on September 30th 2014.

October 20th / Bloomberg, Finance in Asia

GIC (Singapore) snaps up 4.6% of JIMMY CHOO (USA)

Singapore’s sovereign fund GIC has bought a 4.6% stake in luxury shoemaker JIMMY CHOO which listed in London on October 17th 2014.

October 17th / Financial Times


Food Service

Roast meats business KAY LEE (Singapore) sold for SGD 4 M to AZTECH GROUP (Singapore)

KAY LEE ROAST MEAT JOINT has been sold for SGD 4 M to publicly-listed conglomerate AZTECH GROUP, 2 1/2 years after the 32-year-old roast meats institution in Upper Paya Lebar Road was put up for sale. The shop turns in a four-figure daily profit.
The company approached the owners in August and the deal was completed on September 18th. The newly set up KAY LEE PTE LTD will be a subsidiary of AZTECH and it will take over operations on November 18th.

October 23rd / Straits Times


Retail

QATAR INVESTMENT AUTHORITY to pay USD 616 M for 19.9% of department store operator LIFESTYLE INTERNATIONAL HOLDINGS (Hong Kong)

QIA has agreed to pay USD 616 M for a 19.9% stake in Hong Kong department store operator LIFESTYLE INTERNATIONAL. The deal is part of QIA’s diversification of its retail & consumer portfolio by complementing existing investments in HARRODS, TIFFANY & CO.

EV/Revenue (LTM June 2014): 4.2x
EV/EBITDA (LTM June 2014): 9.2x

October 20th / Bloomberg, Capital IQ, Finance in Asia