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To: Anna

From: Kshitiz
Subject: potential M&A targets for WorldWide Brewing Co

Hi Anna
Below are my descriptions and recommendations 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.
Spirit Bay is the second Its segments and operations Recommend
Spirit Bay largest player in Singapore would be appropriate
and Malaysia and largest strategically. The relatively
player in Indonesia in distributed ownership with
segments of beer, spirits 60% of the company owned
and non-alcoholic by Global Sponsor and 40%
beverages. It operates owned by employees would
manufacturing facilities reduce simplicity but it would
and engages in distribution still be appropriate to share
and direct sales and its given its market position in
EBITDA grew by 40% pcp Singapore, Malaysia and
to US$400mm in FY2020 Indonesia and exceptional
financial performanc
Hipsters' Ale has locations An acquisition of Hipsters' Ale Recommend
Hipsters' in Singapore, Indonesia, would make sense
Ale Japan, Korea and strategically and financially,
Cambodia and focuses on given its relevant. segments
beer and spirits. Its and operations as well as
operations include solid financial performance.
manufacturing facilities, Its ownership by 30
distribution and direct independent breweries may
sales and the company affect feasibility though given
experienced EBITDA the suitability otherwise, it
growth of 15ft pcp to would still be appropriate to
reach USH200mm share.
(FY2020).
Brew Co. is the largest It would not be a good fit Not Recommend
Brew Co alcohol manufacturer in from a strategic expansion
Malaysia. Its operations perspective, given it is
include manufacturing Malaysia focused and
facilities only and although operates manufacturing
it had an EBITDA of facilities only. It is listed on
US1800mmin FY2020, this the Malaysian stock exchange
was down 5f pcp. which wouldIncrease the
complexity of a potential
acquisition given its dispersed
ownership. As such, Brew Co.
would not be appropriate to
share.
Bevy's Direct has locations It has locations spanning Recommend
Bevy's in Malayisa, China, across Asia-Pacific and its
Direct Indonesia, Japan, Korea, segments are Let me know if
Cambodia, Australia and you have any questions or if
New Zealand and is a can help with anything else
wholesale distributor in appropriate to share. aligned
beer, spirits and non with WorldWide Brewing.
alcoholic beverages. It This may make sense from a
reported an EBITDA of strategic viewpoint for a
USff250mm which was up vertical acquisition and would
20 pcp. be simple and feasible given
it is owned by one family.
Bevy's Direct would be
appropriate to share.

Let me know if you have any questions or if can help with anything else.

Kind regards
Kshitiz

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