TPG exits Myanmar Distillery

According to a filing, Singapore-listed Thai Beverage (ThaiBev) will acquire a 5% direct stake in MDC for about $42.5 million as well as a 70% indirect stake through the acquisition of two holding companies that control 70% of MDC. ThaiBev will pay $494.4 million and $197.8 million for 100% of both Alliance Asia Investment Private and Alliance Strategic Investments, respectively.

TPG bought 50% of the company in 2015 for an undisclosed sum. Media reports at the time estimated the transaction to value between $100 million and $200 million. 

“When we invested in MDC, we were excited to be partnering with a market leader that had an experienced management team and an extensive, nationwide network,” Ganen Sarvananthan, a partner at TPG, said in a statement. He added that initiatives introduced during the investment period - in areas such as lean manufacturing, electronic procurement, and branding - had resulted in considerable growth in the business.

Founded in 1995, MDC produces a range of spirits, including whiskey, rum, gin, and wine coolers. It is described as an affiliate of IBTC, a Myanmar beverages company that has been estimated to control up to 80% of the local whiskey market.

The company operates two distilling, blending, and bottling facilities in Yangon and Mandalay. Its Grand Royal brand employs about 2,500 staff and maintains a network of 1,300 wholesalers and 20,000 retailers.

TPG invested MDC via its sixth Asia-focused fund, which closed in 2014 at $3.3 billion. It was the GP’s second investment in Myanmar after Apollo Towers, a telecom joint venture established in 2014 with Tillman Global Holdings and London-listed investment group Myanmar Investments International.

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• Topics
• Southeast Asia
• Consumer
• Exits
• Trade sale
• Myanmar
• TPG Capital