Category: Private Equity

Cushman & Wakefield Completes Acquisition of Australia’s Inc RE

Global real estate services firm Cushman & Wakefield has finalized its acquisition of Inc RE, an Australian capital markets firm specializing in commercial sales, acquisitions, and investment advisory.

With the acquisition, Inc RE will join Cushman & Wakefield’s Capital Markets Australian platform and be part of the company’s global Capital Markets network.

In a statement, Cushman & Wakefield said the acquisition bolsters its capital markets platform in the region and globally.

With the combination of our global Capital Markets professionals and the recent acquisition of Inc RE, Cushman & Wakefield is placed to deliver superior results for clients in key markets across the globe,” said Matthew Bouw, Chief Executive Officer, Asia Pacific at Cushman & Wakefield.

Cushman & Wakefield’s Australian Capital Markets practice will be led by Josh Cullen, Inc RE principal.

The team will comprise 14 brokers focused on institutional sales, international investments, acquisitions and investment advisory. Cullen will be supported by Rick Butler and leading brokers Steve Kearney and Mark Hansen.

“The acquisition complements our local Capital Markets platform and creates momentum for us in the Capital Markets landscape nationally. It provides us with opportunities to accelerate the growth of the company’s broader commercial real estate business, particularly in Asset Services and Agency Leasing,” James Patterson, Chief Executive, Australia and New Zealand said.

Also Read: Philippines: Pilmico Acquires Singapore’s Gold Coin for $334m

In addition to Josh Cullen, Rick Butler, Steve Kearney and Mark Hansen, Claire Zouroudis, Charles Long and Lisa Lee also will join the Cushman & Wakefield Capital Markets practice based in Sydney. Inc RE’s total transactions completed in the span of 18 months total $2.25 billion.

Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services.

Philippines: Pilmico Acquires Singapore’s Gold Coin for $334m

Aboitiz Equity Venture (AEV)’s food subsidiary Pilmico International Pte Ltd (Pilmico International) announced its acquisition of a majority stake in one of Asia’s largest privately-owned agribusiness corporations, Gold Coin Management Holdings Limited (Gold Coin), as it expands its animal feeds business in the Asia – Pacific region.

Pilmico International is a wholly owned subsidiary of AEV through its Singapore-based holding entity, AEV International.

Pilmico International signed a share purchase agreement with British Virgin Islands -based Golden Springs Group, Ltd. (GSG) for 75% equity interest in Gold Coin.

The consideration is based on an enterprise value of US$413 million, which is equivalent to 75% of the total enterprise value of US$550 million. After deducting cash-like adjustments, the final cash consideration is US$334 million. The transaction will be funded through financing from foreign banks.

Pilmico International was chosen as the preferred bidder following a competitive bid selection process for the acquisition of Gold Coin shares from its holding company, GSG. Gold Coin, which is based in Singapore, is a major producer of animal feeds and operates 20 livestock and aqua feed mills across 11 countries in Asia.

“ASEAN’s market size of over 500 million will bring many opportunities to expand our customer base. This acquisition serves as a platform towards achieving Pilmico’s strategy to grow our core feed milling business beyond ASEAN and now across Asia. This acquisition will add three million metric tons of volume which quadruples our overall feeds production capacity.” said Sabin M. Aboitiz, AEV Chief Operating Officer and Pilmico President and Chief Executive Officer.

The Gold Coin acquisition is Pilmico International’s largest investment in the Asia-Pacific region to date.

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Pilmico International’s first ASEAN venture was in Vietnam in 2014 when it bought a 70% stake in Vinh Hoan Feeds (VHF), one of the country’s major aquafeed manufacturer. In 2017, it bought an additional 15% stake in VHF, effectively increasing its stake to 85%.

Driven by its strategy to widen its footprint in Vietnam and diversify product portfolio, in September 2017, Pilmico International bought a 70% stake in Europe Nutrition Joint Stock Company (Eurofeed), an animal feeds manufacturer.

Hong Kong: Australia’s CTM Acquires HK-based Lotus Travel Group

Australia’s listed Corporate Travel Management has continued its strategic expansion into the Asian market after acquiring a majority stake in Hong Kong-based Lotus Travel Group Limited (Lotus) in a deal worth AU$50 million (HK$300m).

The purchase of 75.1 per cent of Lotus will take effect from October 2, 2018 and will result in CTM becoming the largest travel management company in Hong Kong servicing Greater China, with a combined Total Transaction Value approaching AU$2.5 billion (HK$15bn).

CTM’s partners in Asia, Ever Prestige Investments Limited (EPI), will acquire the remaining 24.9 per cent through CTM Asia.

The acquisition creates optimum scale for the combined entity to leverage technology, support costs and supplier relationships across a wider base to best enhance long-term sustainable growth in the Asian region.

CTM Managing Director Jamie Pherous said the two firms had a great understanding of each other’s culture and leadership teams, which would allow for a seamless integration process.

“Lotus is a long standing and highly regarded travel leader in Hong Kong. They
meet our strict acquisition criteria and, like CTM Asia, are leaders in travel in the region and enjoy high client and staff retention,” he said.

Having operated for more than 60 years, Lotus is a market leader in Hong Kong across the corporate, B2B, wholesale and MICE markets. It employs 400 staff and has offices in Hong Kong and Greater China.

“We have known the CTM Asia leadership team for many years and have watched CTM Asia build a very strong growth business based on highly personalised service delivery with best-in-class technology solutions,” Chairman and CEO of Lotus Travel Group, Patrick Kong, said.

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The acquisition will contribute approximately AU$$4 million (HK$24m) earnings before interest, tax, depreciation and amortisation (EBITDA) over nine months trading to CTM’s 2019 annual results.

Pherous said CTM expected to deliver FY18 results at or slightly above the top end of the previous guidance, at approximately AUD$125m (27% growth on p.c.p).