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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.