21 March 2012
BDA advises on sale of Sichuan Zhiqiang Food to Lunar Capital
Divested 60% to Lunar Capital in China
Lunar Capital (“Lunar”), a China-focused private equity group, has acquired 60% of Sichuan Zhiqiang Food Co Ltd (“Zhiqiang“ or “Joysun”), a leading instant walnut beverage manufacturer in China. The original management team of Zhiqiang will continue to hold the remaining 40% stake in the company. Business Development Asia LLC (“BDA”) acted as the exclusive financial advisor to Zhiqiang on its sale process and strategy.
“As a local Chinese brand, Zhiqiang has a long history and quality products that are recognized by Chinese consumers,” said Derek Sulger, Founding Partner at Lunar Capital, “Lunar’s investment will continue to enhance the brand’s competitive advantage and Zhiqiang’s further expansion in the Chinese market.”
“Zhiqiang is truly a Chinese brand, utilizing high quality walnut resources from Southwestern China. We anticipate the new partnership with Lunar will leverage the solid foundation over the past 20 years, and develop Zhiqiang into a long term competitive brand with sustainable growth. Lunar’s rich network and resources both in the domestic and the international market will bring additional insights and market opportunities to our company,” said Chen JiaZhu, Chairman of Zhiqiang.
“We are confident that the partnership between Lunar Capital and Zhiqiang will be a success, and are proud to have been able to play a role advising on the transaction. This is a good example of BDA being able to assist a well-recognized, though underinvested, local brand in China to attract smart, new shareholders to support its growth ambitions,” said Paul DiGiacomo, Managing Director of BDA Hong Kong.
Founded in 1995, Zhiqiang is one of the pioneers in producing instant walnut-based beverages in China, with the majority of raw walnuts sourced from Southwestern China. Its Zhiqiang or Joysun brand of walnut beverage is well recognized in China, and was granted the official Health Food qualification by the Chinese government. It is so far the only product in the walnut beverage industry to obtain this qualification.
Lunar Capital is a private equity fund with offices in Shanghai, Chengdu, and Hong Kong. It focuses on China investments, especially opportunities in mid-western China. Lunar’s key investment sectors include food & beverage, consumer retail, and natural resources.
About Business Development Asia
Business Development Asia LLC (“BDA”) assists multinational corporate and financial sector clients to identify and execute acquisitions, divestments, JVs, restructuring and capital raising, in Asia and internationally. The company is headquartered in New York with offices in London, Bahrain, Mumbai, Hong Kong, Beijing, Shanghai, Seoul, and Tokyo. BDA employs more than 60 full-time professional staff across its nine offices, supplemented by a team of senior advisors around the world. BDA’s clients include Areva, AXA Private Equity, Celestica, Clariant, Dai Nippon Ink and Chemicals, Ecolab, Hercules, Henkel, Kennametal, Molex, Nalco, Nova Capital Partners, Pfizer, Rexel, Reuters, Ryder, Materion, Sun Chemical, and the Weir Group. Further information on BDA is available at www.bdapartners.com
For more information regarding this transaction, please contact Paul DiGiacomo in Hong Kong on (852) 2537 9565 or Shan Yue in Shanghai on (86) 21 5407 5580.
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