
Southern Capital secures Malaysia creamer carve-out

Southern Capital Group has completed the MYR1 billion ($240 million) acquisition of F&B Nutrition – a producer of sweetened creamer, an oil-based equivalent of condensed milk – from Malaysian food packaging player Can-One International.
The deal, confirmed by Kuala Lumpur-listed Can-One, was agreed in June 2019 with a price range of MYR800 million to MYR1 billion. The price was based on a forward EBTIDA multiple of 10.5x less approximately MYR107.4 million in net debt.
Can-One – which is best known as a manufacturer of tin cans – decided to proceed with the divestment after being approached by Southern Capital. The company had recently submitted an offer for the outright acquisition of industry peer Kian Joo Can Factory and wanted the scope to pay down some of the debt that would be incurred.
F&B Nutrition was established in 1991 – more than 30 years after Can-One – and is best known for producing sweetened creamer and evaporated creamer. Most of its sales come from Asia and Africa, with Malaysia alone accounting for nearly two thirds, while raw materials are sourced from Malaysia, New Zealand, and Europe.
The company generated MYR841.6 million in revenue for the 12 months ended December 2018, up 11.6% year-on-year. Over the same period, net profit rose 55.1% to MYR52.3 million. This uptick in bottom-line performance was linked to growing sales, better production efficiency, and lower raw material costs.
Can-One’s revenue and net profit in 2018 were MYR1.4 billion and MYR46.6 million, respectively. Both increased substantially last year as a result of the Kian Joo Can acquisition.
Southern Capital pursues control deals involving companies with enterprise values of $20-200 million in Malaysia, Singapore and Indonesia. The firm closed its fourth fund on around $500 million in 2018, supported by a stapled secondary led by AlpInvest Partners. Recent activity includes the sale of Singapore-based Canadian International School for S$680 million ($488 million).
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.