Funds advised by CVC Asia Pacific Ltd. (CVC) have completed the acquisition of the assets of Asia Dekor Holdings Limited (AD), a company listed on the Singapore Stock Exchange.
AD is a leading manufacturer and distributor of laminate flooring, medium density fibreboard (MDF) and particleboard in the PRC. The company is based in Shenzhen and currently has 16 million square meters of laminate flooring production capacity, 200,000 cubic meters of MDF production capacity, and 200,000 cubic meters of particleboard production capacity, all of which are located in Guangdong province. AD achieved sales of RMB 749 million in FY 2007 and has a total of 1,100 employees.
The transaction is a 100% buyout in China and represents an important add-on acquisition for Plantation Timber Products (PTP), an existing CVC portfolio company, strengthening PTP’s market position in both wood panels and laminate flooring. CVC believes that the combined entity has excellent growth prospects; and the merger will create significant synergies given the complementary nature of the two businesses.
Acquisition financing is provided by ICBC (Asia), ING, Rabobank, RBS, and WestLB. Merrill Lynch acted as the financial advisor for CVC; Clifford Chance, Jun He, and Maples & Calder acted as legal advisors for CVC. BNP Paribas acted as financial advisor for Asia Dekor Holdings Limited.