Acquisition Date: December 2009
Navis Ownership: 60%
Alliance Cosmetic Group ("ACG") is a beauty and cosmetics company that markets, sells and distributes several brands in the ASEAN region, including its own Silkygirl, Silky White and Stage, and acts as a distributor for Revlon and Avene. The Silkygirl brand has the largest market share in Malaysia for mass market retail color cosmetics. The Company's product range comprises of mostly color cosmetics (such as lipsticks, foundation, blushers, eye-shadows, eyeliners and nail polish) and fragrances. The Avene Brand is focused on the dermatological skin care sector.
The Company has a well-refined and distinct business model targeting customers 15 – 25 years old, delivering good quality products, priced at 20 to 40% below competitors, positioned as young and fun. All manufacturing is outsourced, with all other aspects such as design, sales and distribution being managed in-house. This delivers attractive margins and ROCE. ACG has a deep and well-organized management team with senior managers having significant years of FMCG experience.
- Non-cyclical, cash generative and acquisitive industry with growth rates at 2x GDP growth driven by low per capita spend, young demographics and further urbanization
- Leading mass market color cosmetics player in Malaysia, Singapore and Brunei
- Category expansion of Silkygirl into other categories and accelerate fragrance expansion
- Opportunity to create a strong, regional presence through organic and M&A initiatives. Efforts underway to fast track entry in Indonesia and Philippines
- Deep, well-organized and proven management team
Acquisition Date: June 2010
Navis Ownership: 83.1%
Country: Australia/New Zealand/Asia
WorldMark is a provider of products and services through Automotive Dealerships primarily in Australia and New Zealand, and is expanding its services into Asia, particularly China and India. The primary business unit, "MotorOne", sells after-market products such as window tint, electronic accessories and protection for paintwork and internal fabrics on approximately 25% of all new cars sold in Australia. The business has a network of 900 sales consultants servicing approximately 1,300 of Australia's 1,600 new car dealerships, giving it strong relationships with over 80% of the market. The core philosophy of the business is to provide car dealerships with an additional income stream by sharing the margin on the sale of after-market products and services to the ultimate car-buying customer.
WorldMark also has a range of other products that leverage on this strong partnership with auto dealers. These include provision of accounting systems, warranty claims management (on behalf of auto manufacturers), customer retention programs and a network of franchised "window tint" workshops. WorldMark supplies a product or service to 1 in every 2 cars sold in Australia.
In addition, WorldMark owns Sewells, a world-class automotive consultancy that provides a range of services (from dealer training to performance benchmarking analytics) to global manufacturers, in particular General Motors, Ford and Nissan, across many geographies including Australia, NZ, China, India, South East Asia and South Africa.
- Dominant aftermarket service provider with a history of innovation - historically grown faster than market, with additional opportunities for expansion (organic & acquisition) in Australia and Asia
- Strong upswing in Australian motor vehicle sales (post GFC) and "white-space" opportunities (e.g. fleet, electronics)
- Highly capable and experienced management team with strong track record of delivering growth through acquisitions and organic initiatives
Acquisition Date: June 2010
Navis Ownership: 71%
King's is an established industrial safety footwear manufacturer. It operates 2 factories, located in Batam (Indonesia) and Portugal, with total production capacity of 4.4 million pairs of shoes per year.
The Company markets its internationally certified safety shoes under its own brands – "King's" and "Otter". King's has a dominant market share of more than 50% in South East Asia supplied from its large scale low-cost manufacturing hub located in Batam. Otter shoes, no. 5 in Germany, are mostly produced in Portugal and positioned at the premium end of the market, particularly in Germany and neighbouring countries. King's acquired Otter in 2002 when it was losing market share, and successfully turned it around.
- Strong, established brands, well placed to benefit from a stable and growing protective footwear market
- Opportunity to realize operational efficiencies, particularly in working capital/supply chain management
- Raw material sourcing and production cost arbitrage between Portugal/Australia and Batam
- Potential for follow on acquisitions in Europe to build on superior cost/market position in various geographies
- Acquisitive industry with general safety equipment players looking to make acquisitions in protective footwear
Acquisition Date: August 2009
Navis Ownership: 63%
Trio is a fully integrated designer, manufacturer and distributor of equipment used in mining, stone and aggregate processing industry. Main products include: crusher, feeder, screen, washer, conveyor, magnet with increasingly more sales from integrated and complex plants/systems Trio has a global presence with equipment and spares sold in every major market in the world, both in developed and emerging countries. Its main manufacturing facilities are located in Shanghai, with significant value-added operations in the United States.
- Technically comparable products vs. established and much higher priced competitors. Well positioned to gain share globally
- Increasing sales of higher margin and more sophisticated products to complement existing range
- Due to its cost advantages, well-positioned to compete in a down or recovering market, and as industry consolidates to eliminate higher priced and higher cost competition
- Well run manufacturing facility based in China, with a low overhead structure yielding strong ROCE
- Consolidating and acquisitive sector
- Navis' timing of acquisition is at trough of cyclical earnings