To: Anna
From: Joan Pujol
Subject Potential M&A targets for Worldwide Brewing
:
Hi Anna,
Below are my descriptions and recommendations for potential M&A targets for worldwide
brewing.
Company Description
HappyHour HappyHour Co. is the
Co. largest player in
Singapore and Malaysia,
in the segments of beer,
spirits and non-alcoholic
beverages. Its
operations include
manufacturing facilities,
distribution and direct
sales and it has
demonstrated strong
growth in EBITDA in
FY2020 which was up
20% pcp and amounted
to US$300mm.
Spirit Bay Spirit Bay is the second
largest player in
Singapore and Malaysia
and largest player in
Indonesia in segments
of beer, spirits and non-
alcoholic beverages. It
operates manufacturing
facilities and engages in
distribution and direct
sales and its EBITDA
grew by 40% pcp to
US$400mm in FY2020.
Hipsters' Ale has
locations in Singapore,
Indonesia, Japan, Korea
Relevance to WorldWide Recommendation
Brewing
It has similar operations to Recommend
WorldWide Brewing
across the same segments
and is the leading player in
Singapore and Malaysia,
suggesting the potential
for strategic benefits and
synergies. It has solid
financial results and an
ownership structure that
is owned by 3 families,
rendering a potential
acquisition relatively
simple and feasible.
HappyHour Co. would be
appropriate to share.
Its segments and Recommend
operations would be
appropriate strategically.
The relatively distributed
ownership with 60% of the
company owned by Global
Sponsor and 40% owned
by employees would
reduce simplicity but it
would still be appropriate
to share given its market
position in Singapore,
Malaysia and Indonesia
and exceptional financial
performance
An acquisition of Hipsters' Recommend
Ale would make sense
strategically and
 and Cambodia and financially, given its
Hipsters' focuses on beer and relevant. Segments and
Ale spirits. Its operations operations as well as solid
include manufacturing financial performance. Its
facilities, distribution ownership by 30
and direct sales and the independent breweries
company experienced may affect feasibility,
EBITDA growth of 15ft though given the
pcp to reach suitability otherwise, it
USH200mm (FY2020). would still be appropriate
to share.
Brew Co. is the largest It would not be a good fit Not Recommend
alcohol manufacturer in from a strategic expansion
Malaysia. Its operations perspective, given it is
Brew Co. include manufacturing Malaysia focused and
facilities only and operates manufacturing
although it had an facilities only. It is listed on
EBITDA of US1800mmin the Malaysian stock
FY2020, this was down exchange which
5f pcp. wouldIncrease the
complexity of a potential
acquisition given its
dispersed ownership. As
such, Brew Co. would not
be appropriate to share.
Bevy's Direct has It has locations spanning Recommend
locations in Malayisa, across Asia-Pacific and its
Bevy's China, Indonesia, Japan, segments are Let me know
Direct Korea, Cambodia, if you have any questions
Australia and New or if can help with
Zealand and is a anything else appropriate
wholesale distributor in to share. aligned with
beer, spirits and non WorldWide Brewing. This
alcoholic beverages. It may make sense from a
reported an EBITDA of strategic viewpoint for a
USff250mm which was vertical acquisition and
up 20 pcp. would be simple and
feasible given it is owned
by one family. Bevy's
Direct would be
appropriate to share.

Let me know if you have any questions or if can help with anything else.

Kind regards,

Joan Pujol