SEPTEMBER 2014

EURO-ASIA M&A TRENDS

2014 is turning out to be a truly impressive year for transactions and has seen markets move into strong recovery as evidenced by the 564 M&A deals completed so far this year. This is on track to be the strongest year for M&A since 2012 when 768 deals were closed.

While US continue to dominate global M&A with 60% of global activity, Asia-pacific M&A delivered the strongest performance globally with Asian acquirers achieving 14.1% more than their regional index between 1 July and 11 September.

A significant spike in public recommended deals, with 23 public deals led to the highest quarterly number since 2007. This is nurtured by China’s continuing state reforms with domestic consolidation across sectors. The energy sector is particularly active with CHINA NATIONAL PETROLEUM CORPORATION USD 5 Bn investment in KAZMUNAIGAZ.

The M&A trend in India has been one of the strongest performers globally, with appetites for M&A deals increasing by 10% in the first half of 2014. However, M&A activity seems to be slowing for Q3 as companies are waiting for higher valuation and more business friendly policies from the new government. The better moneymaking sectors in India this year are healthcare, pharmaceutical and biotechnology.

Source: GCF, Mergemarket

FOOD & BEVERAGE

Dairy

KKR (USA) sells its remaining stake in CHINA MODERN DAIRY (China) for about USD 80 M

KKR has announced that it will sell its remaining stake in CHINA MODERN DAIRY for about USD 80 M.
Half-year profit by June 30th of CHINA MODERN DAIRY was USD 89 M.
KKR and CDH initially bought stakes in CHINA MODERN DAIRY after the country’s 2008 scandal in the milk industry involving chemical-laced products. KKR paid USD 150 M in cash for a 34.5% stake. MODERN DAIRY went through an IPO in 2010.

September 1st / Reuters

FONTERRA (New Zealand) buys shares in BEINGMATE (China) as part of a dairy partnership

Kiwi dairy giant FONTERRA has acquired a 20% stake in the Chinese baby milk-maker BEINGMATE BABY & CHILD.
FONTERRA hopes the partnership will help its infant formula brand ANMUN, which was launched in China in 2013, gain traction in the booming Chinese baby-milk market. The company has projected that this market will double in size by 2017 reaching a value of USD 33 Bn.
This foreign investment in a Chinese dairy company is not an isolated case as many M&A transactions have taken place in China in the past 2 years. 8 dairy companies among the top 10 (in sales) in China have received foreign investment.

September 27th / The NZ Herald


Food Ingredients

Bangkok-based canned tuna giant Thai Union looks to buy more assets overseas

The world’s biggest producer of canned tuna, THAI UNION FROZEN PRODUCTS, is buying Norwegian seafood firm KING OSCAR, for an undisclosed sum.
The purchase comes days after it bought French smoked salmon producer MERALLIANCE, for an undisclosed amount.
In addition to organic growth, mergers and acquisitions will continue to be the company’s key strategy for business expansion in both short and long term. In developed market, TUF will continue to focus on acquiring brands and established distribution networks to leverage its European brands.

September 15th / Reuters, BBC


Retail

TEMASEK (Singapore) in talks to buy stake in Indian firm

Three investment firms, including Singapore’s TEMASEK HOLDINGS, are in advanced talks to buy a 30 per cent stake in the retail arm of India’s ADITYA BIRLA GROUP for US 400 M to US 500 M.
The other two firms involved in the talks are LVMH’S private equity arm, L CAPITAL, and INTERNATIONAL FINANCE CORP (IFC)

ADITYA BIRLA GROUP will use the funds to expand its retail operations
Est EV (2013) : USD 450 M

September 26th / Asia One

HEALTH & BEAUTY

Cosmetics

French fund buys PAYOT SKIN CARE (FRANCE) from Spain’s PUIG

LBO France has acquired skin care company PAYOT from Spanish perfume group PUIG.
Financial terms of the deal were not disclosed, with valuations for PAYOT between EUR 30 M to EUR 40 M.
The French fund acquired an 80% stake in PAYOT alongside a new management team led by Italian cosmetics entrepreneur Andrea Surliuga.

Est EV (2013): EUR 43.8 M

September 30th / Reuters


Pharmaceuticals

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

ENGINEERING & CLEANTECH

Engineering & Construction

QuEST Global (India) To Buy NeST Group’s (India) Engineering Services Business

Making its second acquisition this year, Warburg Pincus backed QuEST GLOBAL ENGINEERING is acquiring the engineering services business of NeST GROUP for an undisclosed amount.
Reports peg the deal value to be around INR 5,000-6,000 M (USD 82 M – USD 98 M). The inorganic strategy of QuEST is a result of strong demand for product engineering.
The engineering service business had a turnover of INR 2,500 M (USD 41 M) with an operating profit between INR 750-800 M (USD 12 M – USD 13 M).

EV (2013) : USD 85.6 M
Est. EV/Revenue (FY 2013): 2.1x
Est. EV/EBITDA (FY 2013): 6.7x

September 15th/ Deal Curry


Water Treatment

BEIJING ORIGINWATER (China) clinches sewage plant project in Shanxi province

BEIJING ORIGINWATER TECHNOLOGY CO LTD has won the bid for a sewage plant project in Shanxi province. The cost of the sewage plant project will be for RMB 1.1 Bn (USD 179 M).
BEIJING ORIGINWATER TECHNOLOGY CO LTD provides sewage treatment and sewage facility development services. Their services include sewage treatment plant construction and design, equipment integration solutions.

September 15th/ Reuters

Renewable Energy

BHARTI SHIPYARD (India) exits wind power business

BHARTI SHIPYARD has hived off its wind power business to a GHATGE PATIL GROUP company for INR 555 M (USD 9 M)
The assets comprised of 14 wind turbines generators having a capacity of 15 MW located in the Dhule district of Maharashtra.
The company’s losses had increased to INR 8.4 Bn (USD 136.7 M) in 2014 from INR 4.9 Bn (USD 80 M) in 2013 and so it is exiting its non-core business to focus on ship building.

September 22nd/Deal Curry

NEW TECHNOLOGIES

Social Media

YUUZOO (Singapore) completes reverse takeover of W CORPORATION (Singapore) of SGD 491 M

Social media & e-commerce firm YUUZOO has completed a SGD 490.9 M RTO (Reverse Takeover) of W CORPORATION (formerly CONTEL CORPORATION) to become one of the first social media firms Singapore-listed social media company.
YUUZOO is looking to expand operations in key economies after having recently signed an agreement in China.

September 16th / Channel News Asia


Payment Solutions

COLLINSON GROUP (UK) strengthens loyalty offering with acquisition of WELCOME REAL-TIME (FRANCE)

COLLINSON GROUP, a global leader in shaping customer behaviour to drive revenue and add value to its clients, has announced the acquisition of WELCOME REAL-TIME, an international provider of payment-based loyalty solutions.
The acquisition will further strengthen COLLINSON GROUP’s loyalty capability, which includes leading loyalty marketing agency ICLP, advanced online omni-channel earning and redemption platforms through Collinson Latitude.

September 19th/ PR Newswire


E-Commerce

Ecommerce titan JD.COM (China) cooks up USD 50 M in funding for startup food delivery service

China-based online food delivery service DAOJIA has raised USD 50 M in Series D funding from JD, an ecommerce firm and Alibaba’s largest rival in China.
This is the second time that JD invests in DAOJIA, after an undisclosed amount of Series C funding 12 months ago. DAOJIA covers 8 major Chinese cities with plans to expand to 20-30 cities next year. It also has 1 M registered customers and employs 1,000 staff over 3,000 partner restaurants.

September 17th / Tech in Asia

BELLABOX (Australia) raises USD 5.5 M to send their beauty boxes across Asia Pacific

BELLABOX, an Australia based start-up which delivers beauty product samples to its members for them to try before they buy, has announced that it have raised USD 5.5 M from digital publishing company ALLURE MEDIA, a subsidiary of FAIRFAX MEDIA. USD 2.7 M will be directly reinvested into the business while the rest will go to other channels such as outgoing shareholders. BELLABOX has grown its database from 6,000 to 40,000 members across Australia and Singapore.

September 15th / Tech in Asia

LUXURY & LIFESTYLE

Furniture & Accessories

AWOX (France) buys CABASSE, a French Hi-Fi company for EUR 2.5 M

French start-up AWOX has bought French Hi-Fi company CABASSE for EUR 2.5 M. AWOX produces connected bulbs (diffusing music, videos or perfume).
The previous owner of CABASSE was CANON (since 2006). Canon wants to focus now on its core businesses. Both companies intend to build synergies as regards small wireless products.
The two company had about the same turnover in 2013 i.e. EUR 7 M. AWOX’s IPO has enabled the firm to raise EUR 20 M. The target turnover for 2016 is EUR 30 M.

September 15th / Les Echos

WENSLI (China) invests in silk scarf maker MARC ROZIER (France)

The Hangzhou-based textile group WENSLI has acquired a 30% stake in French silk scarf maker MARC ROZIER & has ambitious investment & expansion plans for the Lyon-based SME to reinforce its production capability and its creative & sales workforce.
The French company, currently owned by the Provent family, will be progressively acquired by the Chinese group who plans to become the majority shareholder in 2015.

September 15th / Les Echos, L’Usine Nouvelle


Jewellery & Timepieces

After backing Snapdeal, Ratan Tata invests in jewellery e-tailer BLUESTONE (India)

Ratan Tata, former chief of Tata Group and currently chairman emeritus of group’s holding company TATA SONS, has invested an undisclosed amount in Bangalore-based JEWELS ONLINE DISTRIBUTION INDIA PVT LTD, the company behind online jewellery retailer BLUESTONE.
In March this year, BLUESTONE secured USD 10 M in funding led by KALAARI CAPITAL with participation from existing investors ACCEL PARTNERS and SAAMA CAPITAL. Prior to this, it had netted USD 5 M in funding from ACCEL, SILICON VALLEY BANK and serial entrepreneur K Ganesh in 2012.

September 11th / VC Circle


Fashion

POMELO (Thailand) raises USD 1.6 M in pre-series A funding from multiple investors

POMELO, a Thailand-based online fashion brand & e-tailer announced that it has raised USD 1.6 M in a pre-series A funding round led by JUNGLE VENTURES. Other investors include: SKYPE co-founder Toivo ANNUS, 500 STARTUPS, FENOX VENTURES, QUEENS BRIDGE VENTURES & others.
POMELO has officially launched at the beginning of the year. It brings Korean fashion trends to SEA under its own label in the sub-100 USD range.
It has grown rapidly in Thailand, has recently launched in Singapore in September, and has plans for Malaysia in Q1 2015.

September 29th / Tech In Asia, e-27


Food Service

HUY VIETNAM GROUP (Vietnam) closes USD 15 M series B Equity funding for restaurant chain expansion

Vietnam’s largest operator of self-managed, local Vietnamese food restaurants has secured a USD 15 M equity financing from institutional investors & family offices from Malaysia, Korea & Hong Kong including AIF CAPITAL (HK) and New Asia Partners (a US-based PE firm).

September 28th / AVCJ

STANDARD CHARTERED PRIVATE EQUITY leads a USD 48 M joint investment in restaurant chain MAD FOR GARLIC (Korea)

SCPE has led a USD 48 M joint investment in Italian-inspired restaurant chain MAD FOR GARLIC in South Korea, which was a spin-out from Korean group SUN AT FOOD.
The chain counts 29 outlets in South Korean & 4 restaurants across Singapore, Indonesia & the Philippines.
The company plans to use the funds to further expand regionally to China, Hong Kong, Taiwan & Vietnam.

September 23rd / PE Hub, AVCJ


Wine & Spirit

Acquisition of CHATEAU DE POMMARD (France) by American entrepreneur Michael BAUM

The Silicon Valley entrepreneur, Michael Baum, has acquired CHATEAU DE POMMARD. Michael Baum has built its fortune by creating high-tech companies, one of which, Founder.org, has evidenced a striking success by helping students to become themselves entrepreneurs.
The amount of the transaction has not been disclosed.

September 17th / Le Figaro

TREASURE WINE (Australia) takeover talks with PE firms KKR & TPG end

Australian wine-maker TREASURY WINE ESTATES has ended talks with PE firms KKR & TPG, which were battling to take over the wine company.
TREASURY has issued a statement announcing: “it is now apparent to the company that the bidders are not able to support a transaction on terms and at a price acceptable to the Board”.

September 29th / Reuters