13 May 2015
BDA advises TT International/Electronic Solution on growth capital investment by Standard Chartered Private Equity
Sold stake in electronics business to Standard Chartered Private Equity
BDA Partners is pleased to announce that its client, TT International Ltd (“TTI”), has completed a transaction in Indonesia with Standard Chartered Private Equity Ltd (“SCPE”). SCPE injected US$42m into a newly formed JV for a 45% stake. TTI injected a majority of its retail electronics stores in Indonesia under the Electronic Solution brand into the JV.
The JV also acquired several retail electronics stores under the Electronic Solution brand that had previously been owned by third parties. Before the transaction, TTI owned and operated 18 Electronic Solution stores, and managed a further 41 stores owned by third parties. After the transaction, the JV owns 39 well-positioned stores. TTI expects that, with a larger retail footprint, stronger financial position, and new resources to fund expansion, the JV will successfully build on its position as one of the largest electronic retailers in one of SE Asia’s fastest growing economies.
BDA initiated the transaction and introduced the parties to each other.
Investor relationships and sector expertise: TT International was attracted to BDA’s Indonesian consumer sector knowledge, Singapore track record, and global financial sponsor access. The consumer sector has been a particular focus for BDA, with successful transactions across Asia.
Cross-border execution: BDA’s experienced M&A transaction team coordinated a complicated deal structure, requiring due diligence across multiple languages, advisors and countries, and advised on the negotiation and terms.
Trusted guidance: BDA’s deal team was involved in each step of the transaction and facilitated an excellent outcome for TTI. BDA’s international offices allowed for seamless execution between a SE Asian management team and a global private equity player.
Financial sponsor relationships: The majority of BDA’s transactions in SE Asia involve financial sponsors. BDA knows which firms like to invest in which sectors and countries and has a continuous flow of opportunities to show them. In this instance, BDA was instrumental in introducing SCPE to the transaction.
Simon Kavanagh, BDA Managing Director in Hong Kong, said, “We are pleased to have advised TTI and its Electronic Solution business in Indonesia. This transaction is a good example of BDA bringing regional expertise to successfully conclude complicated multi-party transactions. BDA is well positioned to advise on other consumer transactions in Indonesia.”
About TT International
TT International is engaged in retailing, distribution and trading of consumer electronics, furniture and furnishing products to the public, distributors and dealers. It operates 100 furniture and consumer electronics stores across seven countries, including Singapore and Indonesia. It owns and markets a range of furniture and electronics brands. It also owns and operates BIG BOX, Singapore’s largest mega warehouse retail store concept. www.tt-intl.com
About Standard Chartered Private Equity
SCPE is the private equity arm of Standard Chartered Bank. SCPE invests in companies in need of expansion capital or acquisition finance, and in management buy-outs. SCPE focuses on companies whose principal operations and management are located in Asia, Africa or the Middle East. It is an active partner that provides board-level strategic advice and access to the international network of Standard Chartered Bank, and since inception has invested about US$ 6 billion in over 100 companies across the bank’s footprint. www.sc.com
BDA Partners (“BDA”) is a leader in cross-border investment banking involving Asia. BDA advises on M&A, capital raising, and restructuring. BDA has been consistently owned and managed by the same team since 1996. BDA has a track record of providing independent advice to blue-chip corporate and financial sponsor clients from North America, Europe and Asia. BDA is headquartered in New York with offices in London, Bahrain, Mumbai, Ho Chi Minh City, Hong Kong, Shanghai, Beijing, Seoul and Tokyo. BDA was named M&A Advisory Firm of the Year at The ACG Champions Awards in 2014. BDA formed a partnership with William Blair & Company in 2011. www.bdapartners.com
For more information regarding this transaction, please contact Simon Kavanagh in Hong Kong at +852 3529 2002 or Rica Wirianata in Singapore at +65 6808 6255.
BDA carries out its US securities business through BDA Advisors Inc., a broker-dealer registered with the US Securities and Exchange Commission (SEC) and a member of FINRA and SIPC. BDA’s UK subsidiary is authorised and regulated by the Financial Conduct Authority.
Divested assets to Centric Brands
Agreed to divest a 70% stake to Affirma/SCPE
Divested Alliance Cosmetics Group to Mandom
Investcorp invested up to $250m in China Everbright New Economy Fund
Divested Leyou to Warburg Pincus
Divested Chinese RTW business to a Hong Kong-based investor
Divested Gourmet Noodle House to GreenTree Inns
Growth capital raise
Divested Harrys of London to Charles Cohen
Acquired Chinese food ingredients company, Tianning Flavours
Merged with Fitness First Asia, led by Navis Capital
Raised growth capital
Divested Happy Socks to Palamon
Divested Theodore Alexander to Creative Home Furniture
Divested Clark's Botanicals to Glansaol
Raised growth capital from Standard Chartered Private Equity
Divested King Koil China to Advent International
Divested CHS Ningbo Protein Foods to Shandong Wonderful
Divested lighting business, Halonix Technologies
Divested Chinese dessert restaurant chain