Asian Citrus acquires Lunar Capital-backed BPG Food & Beverages for $257.8 million
Lunar Capital-backed BPG Food & Beverages Holdings Ltd. has been acquired by Asian Citrus, the largest orange plantation owner and orange producer in China, for more than HKD$2 billion ($257.8 million).
Last month, Asian Citrus announced its intention to acquire a controlling stake in BPG Food & Beverages and its subsidiaries including Top Honest Holdings Ltd., Fame Zone Ltd. and Beihai Perfuming Garden Juice Company Ltd. (Beihai BPG), which is a leading supplier of tropical fruit juice concentrates in the Mainland. According to Lunar Capital Partner Derek Sulger, between 2007 and 2010, BPG's revenue and earnings have grown approximately 3x. Lunar Capital began working with BPG about three years ago and announced the funding of an investment in the company in early 2010. Last year, Asian Citrus also received PE backing from Orchid Asia IV, L.P., which injected $14.5 million in the form of common shares.
Asian Citrus acquires BPG for HKD$2.04 billion ($262 million), of which HKD$780 million ($100.5 million) - or just under 40% - is to be paid in cash. According to Asian Citrus, the acquisition is a play to expand its focus area from operating orange plantations to producing and distributing juice products, led by BPG's leading presence in tropical juices, to the Chinese market. There is no word on whether the BPG business will remain separate or if its operations will be fully incorporated into the Asian Citrus brand. Lunar Capital has served on BPG's board and it is unclear what board involvement investors in BPG will take up in Asian Citrus.
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