E-MAIL

To:

Anna
Managing director
JP MORGAN

FROM :

Darshan
Executive
JP MORGAN

SUBJECT : Summary of Potential M&A Targets for Worldwide Brewing

Miss. Anna,
Considering all the different companie’s Pros & Cons below is an analysed viewpoint
of the recommended & Non-Recommended marked companies based on the
relevance to worldwide brewing. Please refer to the table below for the same :

COMPANY DESCRIPTION RELEVANCE RECOMMENDA

TIONS
• HQ: Singapore | Other Highly
1. Happy locations: Malaysia, >Market leaders in 2 Recommend
hour co. China major Asian countries and
• Segments: Beer, further expansion plans
Spirits, Non-alcoholic into the largest Asia
beverages country china with a
o #1 player in Singapore decent EBITDA and yoy
and Malaysia growth rate of 20%
• Operations:
Manufacturing facilities >strategic timing to enter
(Singapore, Malaysia since the largest &
(outsourced), China, new controlling shareholder is
facilities looking for an exit holding
planned for Cambodia), 60% and management is
Distribution, and Direct looking for potential
Sales buyers in the market.
• Shareholders: Owned
solely by three families
(one has passed away
forcing a sale process)
• EBITDA US$300mm
(FY June 2020 actuals)
up 20% pcp
 • HQ: Indonesia | Other Recommend
2. Hipster' Ale locations: Singapore, >Spread across 4 major
Malaysia, China Asian countries, self
• Segments: Beer, manufacturing and direct
Spirits, Non-alcoholic distribution with its self
beverages owned 30 breweries and
o #2 player in Singapore led by a consortium of
and Malaysia, #1 in micro breweries in every
Indonesia region giving it strategic
• Operations: production advantage and
Manufacturing facilities since the operating cycle
(Indonesia), Distribution, is under company control
and Direct Sales supply chain
• Shareholders: 60% management becomes
owned by Global easier .
Sponsor, 40% employee
owned >Decent growth of 15%
• EBITDA US$400mm with a decent EBIDTA
(FY June 2020 actuals) keeps the company
up 40% pcp valuation in check making
it suitable to enter into an
m&a transaction.

3. Brew co. • HQ: Malaysia | Other Considerable

locations: Singapore, >The company mainly
Indonesia, Japan, Korea, specialises in
Cambodia manufacturing and is a no
• Segments: Beer, Spirits 1 manufacturer and
• Operations: hence has a lot of
Manufacturing facilities experience & expertise in
(consortium of efficient beverage
independent manufacturing.
microbreweries in each
region), Distribution, and >Company has an
Direct Sales excellent EBIDTA of $800
• Shareholders: 30 million yet due to a fall of
independent breweries 5% this year makes them
• EBITDA US$200mm vulnerable .
(FY June 2020 actuals)
up 15% pcp >Hence , This makes the
company an excellent
acquisition target to
expand by atmost
utilisation of company's
manufacturing potential.

4. Spirit bay • HQ: Malaysia

• Segments: Beer, Spirits >Company has marked a Highly Not
• Operations: yoy growth of 40% with recommended
Manufacturing facilities almost close to half a
only billion in EBITDA makes
o #1 alcohol them a very expensive
manufacturer in Malaysia target for both a merger
• Shareholders: listed on or acquisition at the
the Malaysian stock moment.
 exchange (mostly
institutional >Majority stake if 60%
shareholders) owned by a foreign
• EBITDA US$800mm sponsor hence
(FY June 2020 actuals) communication,
down 5% pcp management ethics &
culture bring a huge gap
to analyse.

>Company has a focus

on profit maximisation in
the short run and May
compromise on quality in
its current process cost
cutting .

>Hence, All together

makes it a very
unattractive and highly
inappropriate timing to
enter into an m&a
transaction with the
company

5. Bevy's • HQ: Singapore | Other

Direct locations: Malaysia, >The client is looking for Not
China, Indonesia, Japan, an expansion in Asian recommended
Korea, Cambodia, continent but Bevy's
Australia, operation extend to other
New Zealand continents like Europe &
• Segments: Beer, Australia bringing In a lot
Spirits, Non-alcoholic of international barriers &
beverages complications to consider.
• Operations: Wholesale
Distribution only >The owner is focused in
• Shareholders: Owned a different arena of work
by one family of whole foods retailing
• EBITDA US$250mm and company mainly
(FY June 2020 actuals) focuses on wholesale
up 20% pcp distribution.

>Hence, Making this

company not very ideal
for the client as the
interests of both the
companies do not align .

I hope the above analysis is insightful, expecting a successful M&A transaction to

our team and client.
Thank you
Yours sincerely,
A Darshan Mehta