LVMH bought MBS rooftop club/Ku De Da(18.3)
LVMH will also open a Ku De Da outlet in HK California Tower/LAN Kwei Fang District @ 2nd half this year.
It has secured sites in Thailand and France.
Dubai, Rome, Miami & Beijing are also on the card. Follow by NY and Tokyo next 3 yrs.
Love Compassion
A Life not Reflected is a Life not Worth Living.
LVMH's private equity arm buying 'over 90%' of Crystal Jade - ST 30.4.14
US$100m for
Crystal Jade:
Open in 1991, 47 outlet in SGP, 82 in oversea.
Revenue S$250m
2014 rollout:
open 18 restaurant including a 20,000 SQ FT San Francisco eatery house 400 in 8.14
why sell?
Chairman CEO Ip Yiu Tung, SPR since 08 wanted to hand over the reins.
Plan?
public listing?
Love Compassion
A Life not Reflected is a Life not Worth Living.
French luxury group taking over Crystal Jade
LVMH's private equity arm buying 'over 90%' of home-grown chain
Published on Apr 30, 2014 1:02 AM
Crystal Jade chairman and chief executive Ip Yiu Tung said L Capital's backing would open doors for the firm and help it expand faster. -- ST PHOTO: MATTHIAS HO
By Melissa Tan
HOME-GROWN chain Crystal Jade will soon be running its restaurants with a dash of French flair, thanks to a new ownership structure on the menu.
The company is being taken over by Paris-based luxury group LVMH Moet Hennessy Louis Vuitton's private equity arm, which has been on a buying spree over the past few months.
L Capital Asia has signed a deal to buy "over 90 per cent" of Crystal Jade Group for an undisclosed sum, managing director Christina Teo told The Straits Times earlier this week.
"It is a household brand that resonates with many people. We think we can add value," she said.
Sources told The Straits Times that the investment was around US$100 million (S$126 million).
Ms Teo said L Capital invested in Crystal Jade out of a US$1 billion fund incepted this year, and would continue to look out for other deals in Singapore.
The fusion between the two could go beyond the financials. Crystal Jade will be able to tap LVMH's wine and spirits group to expand its offerings, Ms Teo said. That group includes premium labels such as Moet & Chandon champagne and Belvedere vodka.
LVMH's "good relationships with landlords" can also help Crystal Jade secure prime spots for its outlets, she added.
Crystal Jade, which opened its first restaurant at the former Cairnhill Hotel in 1991, now has 47 outlets in Singapore and 82 overseas, and pulled in close to $250 million in sales last year.
L Capital's backing would open doors for the firm and help it expand faster, Crystal Jade chairman and chief executive Ip Yiu Tung told The Straits Times.
Crystal Jade has carved out a foothold in markets like Indonesia and India, and has set its sights on places as far as the Middle East and Europe, he said. It plans to open 18 restaurants this year. A 20,000 sq ft San Francisco eatery that can seat more than 400 is expected to open in August, he said.
The Hong Konger, who became a Singapore permanent resident in 2008, said he was retaining only a "very small" portion of his stake in the company, mainly as he wants to hand over the reins.
"I am already 65 years old, and my daughter has no interest in taking over. It was time to pass it on to someone capable of bringing the business to another level," he said. "We are still a one-man company, but would like to change to being a corporate-managed company so that we can go further."
He plans to stay at the helm for one or two more years before possibly being an adviser or brand ambassador for the company. He and Ms Teo said a public listing for Crystal Jade could be on the cards.
L Capital bought a controlling stake in Singapore club Ku De Ta earlier this year. It also owns part of Australian food outfit Jones the Grocer and Singapore shoe brand Charles & Keith.
melissat@sph.com.sg
Crystal Jade chief on 'marrying off' company
He cried when telling staff about the sale to LVMH's private equity arm
Published on May 3, 2014 1:16 AM
Crystal Jade Culinary Concepts chief executive Ip Yiu Tung with L Capital Asia managing director Christina Teo. The 65-year-old Mr Ip, who has one daughter, says it is very difficult to find a successor. L Capital Asia will be acquiring over 90 per cent of the restaurant group. -- ST PHOTO: NG SOR LUAN
By Rebecca Lynne Tan Food Correspondent
CRYSTAL Jade Culinary Concepts' head honcho Ip Yiu Tung treats the well-known Chinese restaurant group he built like one of his children.
And just talking about its impending sale next week to L Capital Asia, French luxury goods conglomerate LVMH Moet Hennessy Louis Vuitton's private equity arm, makes him emotional.
"I am handing over the company to another father," he said with a quiver in his voice when asked about the sale, in an exclusive interview with The Straits Times at Crystal Jade Golden Palace at Paragon Shopping Centre yesterday.
L Capital Asia will be acquiring over 90 per cent of the restaurant group, which has an annual revenue of close of $250 million. The deal took about three years to materialise.
"I feel sad," he added. "I actually cried when I announced it to my people on Tuesday."
The chief executive, 65, who is also the group chairman and managing director, had to stop to compose himself after the first sentence in an announcement of the sale to 100 key staff members. The usually collected, reserved and matter-of-fact chief then cried, but left the private room at Crystal Jade Golden Palace before he could see their reactions.
On the decision to "marry off" the company, he said: "It is very difficult to find a successor. At the age of 65, even if I keep the business, I can keep it only for another three to five years, that's all. After the age of 70, will I still have the strength? Already, it is quite tough."
The Hong Konger, who is now a Singapore permanent resident, usually spends his weekends in Hong Kong, where he lives with his wife and only daughter, then begins travelling on Mondays to the group's restaurants and offices in other parts of Asia.
The group comprises 120 restaurants, from high-end, fine-dining concepts to ones offering casual Chinese cuisine, in 10 countries from China to India, and 21 cities. It has 47 restaurants here.
Globally, it employs about 4,500 full-time staff.
Crystal Jade has seven shareholders. Some will retain a stake in the business while others will cash out.
Mr Ip has sold all his shares, he said.
The company started out as a single restaurant in the now-demolished Cairnhill Hotel in 1991. Mr Ip invested HK$10 million (about S$2 million at the time) the following year to keep the ailing restaurant afloat, then took on the role of overseeing the strategic direction for the company.
On why he thinks L Capital Asia is a good fit, he said: "Our strength is in providing good quality food and service, but we lack brand building, and good relationships with landlords around the world."
The fund's parent company, he said, is more in tune with the landscape of international business than Crystal Jade, and can "add value" to the group in terms of branding.
L Capital Asia's managing director Christina Teo, 40, said: "Crystal Jade is a household brand with a very strong DNA."
The fund has already identified a chief operating officer or chief executive for Crystal Jade, Mr Ip said. He will stay on as its interim chief executive for a year, then remain as an adviser and brand ambassador to the company.
The sale did not come about because the group is in debt, he said, adding that it is not leveraged or over-committed. It generates enough money to expand organically and has "a lot of cash, just sitting there".
He plans to divide his newfound time into three parts: one part for Crystal Jade, another for his family and the last part for helping the under-privileged in China.
He said: "I am not greedy. I don't need more money to make me happy. I was already happy. I need a meaningful life, not just money."
rltan@sph.com.sg
(30-04-2014, 08:36 AM)chialc88 Wrote: [ -> ]LVMH's private equity arm buying 'over 90%' of Crystal Jade - ST 30.4.14
US$100m for
Crystal Jade:
Open in 1991, 47 outlet in SGP, 82 in oversea.
Revenue S$250m
2014 rollout:
open 18 restaurant including a 20,000 SQ FT San Francisco eatery house 400 in 8.14
why sell?
Chairman CEO Ip Yiu Tung, SPR since 08 wanted to hand over the reins.
Plan?
public listing?
Love Compassion
A Life not Reflected is a Life not Worth Living.
I read in one article that Crystal Jade's net margins is in the high-single digits, between 5-9%. So the company can be earning between SGD 12.5m to SGD 22.5m. Using USD/SGD=1.2532 from yahoo finance, LVMH paid between 5.6 to 10x earnings of Crystal Jade. I will say it is a bargain buy!
(03-05-2014, 11:31 AM)yawnyawn Wrote: [ -> ]I read in one article that Crystal Jade's net margins is in the high-single digits, between 5-9%. So the company can be earning between SGD 12.5m to SGD 22.5m. Using USD/SGD=1.2532 from yahoo finance, LVMH paid between 5.6 to 10x earnings of Crystal Jade. I will say it is a bargain buy!
I respect Mr. Ip from Crystal Jade. It is a wise move, not financially, but for the welfare of his employees. Crystal Jade, after the deal, becomes a very sustainable business, even after Mr. Ip is gone.
Private equity funds eyeing lifestyle companies
Published on May 24, 2014 1:23 AM
In January, French luxury group LVMH Moet Hennessy Louis Vuitton's private equity arm L Capital Asia bought a controlling stake in swanky club Ku De Ta (above). Private equity experts say more lifestyle deals are expected. -- ST FILE PHOTO
By Melissa Tan
SINGAPORE could see more private equity fund investment this year in lifestyle and consumer-oriented companies based here, private equity experts said yesterday.
Fresh money could flow in from oil-rich countries, which would further heighten competition between funds, they added.
"Consumption-oriented industries will continue to do very well" in South-east Asia in general, said Mr Suvir Varma, a partner at Bain & Company South-east Asia.
These include sectors such as food, retail, health care and lifestyle, he told reporters on the sidelines of a talk on private equity trends at the Fullerton hotel.
"It's all to do with the consumer... getting more affluent."
The e-commerce and agriculture sectors could also be ripe targets within the region, he said.
Dr Jeffrey Chi, president of the Singapore Venture Capital and Private Equity Association (SVCA), also said yesterday that there could be "more lifestyle deals ahead" in Singapore.
Overall, private equity funds will continue to be keen on Internet-related, services and health- care sectors in the Asia-Pacific region, he said.
Mr Varma told about 100 dealmakers and investors at the lunchtime talk that Singapore "remains the fulcrum" of South-east Asia's private equity market.
The Republic accounted for around 55 per cent of the total deal value in the region last year, more than any other country in South-east Asia.
He noted that the Singapore companies that private equity funds tended to invest in were those that had operations across Asia and not just Singapore. However, there are fewer deal opportunities in the Singapore market because of its small size. Competition is also heavy, he added.
More "new money" could flow into the South-east Asian region from investors hailing from "countries that have come into significant energy-based riches in the last five to 10 years", such as Qatar, Abu Dhabi and Norway for instance.
This could drive further competition among private equity funds in Singapore, which is already "more than ever before".
Mr Varma said: "Historically you had domestic South-east Asia funds and regional funds that were very focused on investing here, and a handful of foreign funds that you could count on literally one hand.
"Today, you can count on one hand the global majors who are not here... it's only natural that competition goes up. The amount of people with feet on the street locally who are looking for these deals has gone up."
The talk was jointly organised by Bain and the SVCA.
melissat@sph.com.sg