Below are a selection of case studies of recently completed transactions:
Spin-off of a non-core business subsidiary by Farmal d.d. - first Indian investment in Croatia
Lukaps is the largest producer of hard gelatine capsules in Central and Eastern Europe, with 50%+ market shares in Russia, the Ukraine and ex-Yugoslavia.
The parent company, Farmal d.d. is the youngest but fastest growing pharmaceutical company in Croatia, concentrating on competition in the generic market. The owners and management of Farmal made a strategic decision to spin-off the Lukaps subsidiary because they needed to concentrate capital and management resources on the core pharma business.
Ascendant Capital Advisors advised the seller and in cooperation with AFG Venture Group, Lukaps was sold to ACG Worldwide, Mumbai. ACG is the largest capsule producer in Asia and the second largest in the world after Pfizer. This was the first Indian investment in Croatia and the first ACG manufacturing investment outside India. Due to all of these factors, negotiations took several months longer than anticipated. The transaction was closed in September 2007.
Commenting on the take-over, Group Chairman Ajit Singh says, "Bringing the Lukaps family into the ACG umbrella is in keeping with our vision to cater to the global markets and interact with our customers more frequently to meet their expectations on delivery through manufacturing bases in two continents."
Brazen Proza, Executive Director, Lukaps, adds, "We are delighted to be a part of ACG Worldwide. This highly professional group with decades of capsule manufacturing experience will strengthen our production and distribution, offering a bright future for all our employees and stake holders."
Successful partnership between an Italian manufacturer and an Indian jewellery retail chain.
AFG Venture India successfully partnered with Cavour Corporate Finance of Italy to complete a joint venture transaction between Morellato & Sector and Gitanjali Gems.
Morellato & Sector, manufacturer of jewellery and watches with brands including Pirelli P0, Cavalli, Just Cavalli, Miss Sixty, Moschino and John Galliano, has finalised a joint venture with Gitanjali Gems, one of India's largest jewellery retailers. The joint venture will distribute the watch and jewellery brands of the Italian group in India. The deal will see 50 new retail outlets opened.
The total investment in Morellato India Pvt Ltd, formed through Morellato's subsidiary, Armo Netherlands Finance B.V., would be $15-20 million, Gitanjali Gems said in a statement.
The venture will distribute watch and jewellery brands of the Italian group in India.
"We strongly believe that in the changing retail scenario, there is a huge potential for growth in the branded jewellery and lifestyle segment," Gitanjali Gems Chairman Mehul Choksi said.
"The entry into the Indian market will allow us to protect our position with greater force in the Far East, an area that is witnessing exceptional growth," Massimo Carraro, Chief Executive Officer of Morellato & Sector said. It has 26 stores in China.
Morellato makes jewellery and watches under its own brands and under licence for fashion groups Cavalli, Miss Sixty and Moschino.
