Date:
13 March, 2008
Company:
CVC Capital Partners
Title:
CVC Completes Acquisition of Asia Dekor

CVC Completes Acquisition of Asia Dekor

Add-on acquisition for Plantation Timber Products

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.

About CVC

CVC Capital Partners is a leading global private equity firm with over US$38 billion in funds focused on management buyouts. CVC was founded in 1981 and today has a network of 18 offices throughout Europe, Asia and the United States. Since 1981, 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 has completed 30 management buyouts, with an enterprise value of US$19 billion, covering Greater China, Southeast Asia, Korea, Japan, and Australia.

CVC's current Asia Pacific portfolio includes:

  • Zhuhai Zhongfu: China’s largest beverage packaging company;
  • Stella Group: leading integrated travel and hospitality group in Australia;
  • PBL Media: Australia's largest diversified media group (including Channel Nine, ACP Magazines and NineMSN);
  • DCA: the largest diagnostic imaging centre operator in Australia;
  • Amtek: Singapore's largest precision metal stamping company;
  • GS Paper and Packaging: Malaysia's largest paper and packaging company;
  • Plantation Timber Products: a leading manufacturer of wood fibreboards and laminated flooring in China; and
  • Magnachip: a leading semiconductor company in Korea.

CVC's current European portfolio includes:

  • Formula One: the world's leading motor sport management business;
  • Samsonite: the global luggage company;
  • AA: the leading automotive rescue service provider in the UK;
  • Cortefiel: one of the largest apparel retailers in Spain;
  • Debenhams: Britain's leading department store group;
  • Seat Pagine Gialle: the leading directories business in Italy;
  • De la Poste: the Belgian postal services operator; and
  • Post Danmark: the Danish postal services operator.