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To: Anna

From: Aryan Raj


Subject: Potential M&A target from WorldWide Brewing

Hey Anna,

Here are my Description and Recommendation for potential M&A targets for WorldWide Brewing.

Company Description Relevance to WorldWide Recommendation


Brewing

HappyHour HappyHour Co. is the largest It has similar operations to Recommend


Co. player in Singapore and WorldWide Brewing across the
Malaysia, in the segments of same segments and is the
beer, spirits and non- leading player in Singapore and
alcoholic beverages. Its Malaysia, suggesting the
operations include potential for strategic benefits
manufacturing facilities, and synergies. It has solid
distribution and direct sales financial results and an
and it has demonstrated ownership structure that is
strong growth in EBITDA in owned by 3 families, rendering a
FY2020 which was up 20% potential acquisition relatively
pcp and amounted to simple and feasible. HappyHour
US$300mm. Co. would be appropriate to
share.
Sprit Bay Sprit Bay is an Indonesian It has similar operations to Recommend
Company dealing in Beer WorldWide Brewing across the
spirits and non-alcoholic same segments and is the
beverages, It’s the largest in leading player in Indonesia and
Indonesia and the second #2 in Malaysia and Singapore
Largest in Malaysia and which suggest strategic benefit
Singapore. Their operations and synergies over several
include manufacturing countries. Sprit Bay has very
facilities in Indonesia, strong growth and Financial
distribution and direct sale results. The Global Sponsor and
which has generated a profit employee own the company in
of 400mm in EBITDA and up 60-40 split.
to 40% pcp. There would not be much
complexity in acquisition rather
it would be simple one.
Hipsters’ Hipsters’ Ale is a Malaysian Even where Hipsters’ Ale is only Recommend
Ale beer and spirits company dealing in beer and spirits it has
operating in Singapore, successfully managed to cover
Indonesia, Japan, Korea and several different countries which
Cambodia, manufacturing provide Hipsters’ Ale have
microbreweries in each potential strategic benefit and
region, cover distribution and have resulted in solid financials
direct sale. Solid EBITDA of of hipster’s Ale. This also makes
US$200mm up 20% pcp. Hipsters’ Ale a potential
company for acquisition.
However the ownership is more
complicated with 30
independent breweries which
make the acquisition more
complex, given the strategic aim
this opportunity would be
appropriate to share.
Brew Co. Brew Co is a Malaysian beer Despite being the number 1st Do not recommend
and spirits company. Which alcohol manufacture in
only operate in Malaysia, Brew Co. has very
manufacturing facilities, and limited reach globally. Where
are the #1 alcohol Brew Co. not only operates
manufacturing player in solely in Malaysia but also
Malaysia, EBITDA US$800mm owned by institutional investors
down by 5% pcp. and is listed on the Malaysian
stock exchange making the
ownership dispersed, Hence the
acquisition would be complex.
And due to the limited scope of
strategic and operational benefit
it would not be appropriate to
share.
Bevy’s Having HQ in Singapore, Sharing the same segment with Recommend
Direct Bevy’s Direct operates in WorldWide Brewing, Bevy’s
wholesale distribution of Direct operates only in
beer, spirits and non- wholesale distribution and with
alcoholic beverages across a large distribution chain across
Malaysia, China, Indonesia, many different countries along
Japan, Korea, Cambodia, with strong financials, Single
Australia and New Zealand, family ownership making the
with strong EBITDA acquisition simpler. Therefore
US$250mm up 20% pcp. Bevy’s Direct would be
appropriate to share.

Do let me know If you have any further question.

Kind regards,
Aryan Raj

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