To:MD
From:Rahul
Subject: Recommended M&A Targets for WorldWide Brewing Co.
Hi Managing Director,
Following up on Anna’s discussion with Carlos Johnson, I have identified several potential M&A
targets in Asia for WorldWide Brewing Co.'s expansion. Below is a high-level overview of the
key companies that could be considered:
Company Description Relevance to Recommendation
WorldWide Brewing
Co.
HappyHour Based in Singapore and the Similar market Highly recommended
Co. #1 player in Singapore and positioning as due to strong
Malaysia for beer, spirits, WorldWide Brewing in financials and ease of
and non-alcoholic beer, spirits, and non- integration.
beverages. Operations are alcoholic beverages.
integrated across The company has a
manufacturing, distribution, solid growth trajectory
and direct sales, with a and an ownership
growing presence in China. structure (three families,
EBITDA of US$300mm with one looking to exit)
(FY2020), up 20% from the that makes acquisition
prior year. simpler.
Spirit Bay An Indonesian company They are the market Recommend for
operating in beer, spirits, leader in Indonesia, and further exploration due
and non-alcoholic the growth rate offers to growth potential and
beverages, with a presence attractive potential for market leadership in
in Singapore, Malaysia, and WorldWide Brewing. Indonesia.
China. EBITDA of Cost-cutting measures
US$400mm, with a strong by their Global Sponsor
40% growth rate. could provide synergy
opportunities.
Hipsters’ A consortium of 30 Their decentralized Consider as a
Ale independent microbreweries ownership structure strategic fit but be
operating in Malaysia, could pose challenges, mindful of complexities
Singapore, Indonesia, but they are expanding due to ownership
Japan, Korea, and across key Asian structure.
Cambodia. EBITDA of markets.
US$200mm, up 15% YoY.
Brew Co. Malaysia’s #1 alcohol Largest manufacturer in Less priority due to
manufacturer, focused solely Malaysia, but limited declining EBITDA, but
on manufacturing. EBITDA growth potential. worth considering as a
of US$800mm (FY2020), manufacturing-
though down 5% from the focused acquisition.
prior year.
Bevy’s A Singapore-based While they only handle Consider as a
Direct wholesale distributor distribution, their distribution expansion
operating across Southeast regional presence offers opportunity.
Asia, Australia, and New logistical advantages for
Zealand. EBITDA of WorldWide Brewing’s
US$250mm, up 20% YoY. distribution network.
In my view, HappyHour Co. and Spirit Bay are the strongest candidates due to their robust
financials, market leadership, and potential for synergy with WorldWide Brewing Co.’s existing
operations. HappyHour Co. appears particularly promising, given the potential to acquire a
controlling stake with relative ease.
Please let me know if you’d like more detailed insights on any of these companies, and I’m
happy to assist further.
Best regards,
[Your Name]
