Funds advised by CVC Asia Pacific Limited (‘CVC’), in partnership with PT Matahari Putra Prima Tbk (‘MPPA’), have successfully completed the acquisition of 98.0% stake in PT Matahari Department Store Tbk (‘MDS’).
The transaction, which has an enterprise value of approximately US$892 million, is the largest ever foreign PE-led investment in Indonesia and also the largest completed in Asia this year. The transaction demonstrates CVC’s proprietary deal flow, its ability to execute large and complex transactions, and its strong commitment to the region. MDS is CVC’s fourth investment in South East Asia in the last three years.
MDS is Indonesia’s largest department store with over 25% market share nationwide and gross revenues of over US$750 million in 2009. MDS has an iconic brand name and mainly sells fashionable, affordable apparel and wide selection of footwear through its 88 stores in 45 cities throughout the country. With its strong market position and experienced management team, MDS is well positioned to continue its market leadership in the attractive department store sector in Indonesia. CVC has extensive experience in the consumer/retail sector globally, including investments in Debenhams, Cortefiel and Matas, and intends to leverage its expertise and network to fully support MDS’s growth and operations.
Commenting on the transaction, Benjamin Mailool, President Director of MPPA said “We are delighted to complete the transaction today. This marks a major milestone not only for MPPA and MDS, but also for Indonesia, particularly in terms of attracting quality direct foreign investments into the country. We are looking forward to working together with CVC as our strategic partner and leveraging its global retail expertise for MDS to further realise its growth potentials.”
Sigit Prasetya, CVC Partner responsible for its investments in SEA, said “MDS is the country’s leading department store with over 50 years' history and has an excellent performance track record and outstanding brand equity among Indonesian consumers. It represents our first direct investment in Indonesia and reflects our strong confidence in the country’s attractive fundamentals and growth prospects. We are honoured to have the opportunity to work with MPPA, Lippo Group and MDS Management to support the Company’s next phase of development and leadership.”
About PT Matahari Putra Prima Tbk (‘MPPA’)
MPPA is the leading modern retailer in Indonesia with an unrivalled store network of 47 hypermarkets, 27 supermarkets, 53 pharmacy outlets, 90 family entertainment centres and 16 international bookstores as well as a strategic alliance with CVC to operate 88 department stores in more than 50 cities across Indonesia at the end of 2009.
CVC Capital Partners (‘CVC’) is a leading global private equity firm managing over US$40 billion in funds. CVC was founded in 1981 and has a network of 20 offices throughout Europe, Asia and the US. CVC has completed over 250 investments across a wide range of industries and countries.CVC Asia Pacific has been one of the most active private equity investors in the region and is currently investing dedicated Asian funds of approximately US$6.8 billion. To date, CVC Asia Pacific has completed over 30 investments, for a total transaction size of US$25 billion.
CVC’s current Asia Pacific portfolio includes:
- Magnum: the leading lottery operator in Malaysia;
- Amtek: one of the largest independent precision metal engineering companies in the world;
- Nien Made: the world’s largest branded window shutter manufacturer and Asia’s largest blinds manufacturer;
- Zhuhai Zhongfu: China’s largest beverage packaging company; and
- Mister Minit: Asia Pacific’s largest provider of high-end shoe repair, key cutting and engraving services.
CVC’s current European portfolio includes:
- Formula One: the world's leading motor sport management business;
- Cortefiel: one of the largest apparel retailers in Spain;
- Acromas Holdings: the leading automotive rescue service provider in the UK;
- Seat Pagine Gialle: the leading directories business in Italy; and
- De Post – La Poste: the Belgian postal services operator.