Baird buys stake in funeral services provider Nirvana Asia

Rather than take a direct equity interest in Nirvana, Baird has purchased shares in a vehicle through which Tan Sri Kong, Nirvana’s founder and CEO, retains a holding in the business. The size of the transaction was not disclosed. Baird is currently deploying a global mid-market fund that closed in June 2017 at $310 million.

The CVC-led acquisition of Nirvana was a cash-and-stock deal that valued the business at approximately HK$8.1 billion ($1.1 billion). The founder group, which held a 42.69% interest, received HK$1.58 billion in cash and a combination of ordinary shares and preference shares in the acquisition vehicle. Orchid Asia converted its 21.64% stake into HK$800.2 million in cash plus shares. The two investors agreed to take a combined 46.75% position in the acquisition vehicle.

Another private equity investor, AIF Capital, made a full cash exit worth HK$863 million. Andy Tse, the partner at Baird who led the investment in Nirvana, joined the firm in January 2017, having previously worked for AIF. "Andy has been a tremendous addition to our platform," Gordon Pan, president of Baird, said in a statement. "His relationships and expertise in Asia are a critical piece of our global strategy."

Nirvana claims to be the largest integrated death care service provider in Asia in terms of contract sales, revenue, and land bank. It operates 14 cemeteries, 14 columbarium facilities, two funeral homes and six on-site crematoria in Malaysia, Indonesia, Singapore, Thailand, Vietnam and China. The company is the market leader in Malaysia and Singapore, and one of the few private cemetery operators in Indonesia.

Revenue came to $148.58 million in 2015, down from $165.06 million the previous year. Over the same period, net profit rose from $44.65 million to $45.38 million. Nearly 40% of the company’s $197.5 million in contract sales for 2015 came from cremation niches, 29% from burial plots, and the rest from tomb design and construction and funeral services.

Baird Capital is the private investment arm of Robert W. Baird & Co. It was formed in 2013 following the consolidation of four separate PE units. The firm invests in Asia, the US, and Europe.

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• Topics
• Southeast Asia
• Greater China
• Consumer
• Expansion
• Baird Capital Partners Asia
• CVC Capital Partners
• Asia