BDA Advises Con Cung on Sale of Minority Stake to Quadria Capital
BDA Partners is pleased to announce that its clients, the shareholders of Con Cung Investment Corp (“Con Cung”), have sold a minority stake to Quadria Capital. The co-founders of Con Cung will continue to drive the growth of the company, with the support of Quadria Capital and existing institutional shareholders. Part of the proceeds will be used to support further growth of Con Cung.
BDA was the exclusive financial advisor to Con Cung.
Con Cung is the leading mom-and-baby (“M&B”) retail chain in Vietnam, with nearly 600 stores across 48 provinces. As the one-stop M&B solution provider, Con Cung has a diversified product portfolio including baby food, diapers, childrenswear, toys, and personal care products, both private label and third-party brands.
The Company possesses an integrated management system covering all business aspects (from store development, merchandising, planning, logistics to finance and accounting). Con Cung’s system helps to ensure efficient daily interaction between business functions, minimize labor cost, keep track of store performances in real-time basis, as well as optimize store assortment and inventory management.
On the back of its strong IT foundation, the Company has been able to quickly expand its store network and to develop an integrated omni-channel business model. Con Cung’s mobile app offers a customized, seamless shopping experience to customers from online to offline, and aims to be the leading e-commerce “super-app” with quality M&B products and personalized solutions for Vietnamese families.
Nguyen Quoc Minh, Chairman of Con Cung, said, “Over the last ten years, Con Cung has grown rapidly to become the leading, top-of-mind mom and baby retailer in Vietnam; and our strong technology background has helped us to capture the rapidly growing internet economy and online shopping trend in recent years in Vietnam. Leveraging our market leadership in the country, the partnership between Con Cung and Quadria Capital will prepare the company for its next phase of growth, with the focus on expanding the store network, developing the omni-channel model, and generating a differentiated experience for customers.”
Ewan Davis, Managing Director of Quadria Capital, said, “The Covid-19 pandemic has shown how important it is for us to prioritise health and wellbeing. We are proud to partner with Con Cung to provide easy access to essential healthcare products and services in Vietnam, especially to the vulnerable population such as growing families with infants and young children. Con Cung has done a tremendous job in building a market leading platform that addresses such unmet needs and we are excited to come on board to support its next phase of growth.”
Huong Trinh, Managing Director, Head of Ho Chi Minh City, BDA Partners, said, “We are proud to have advised our clients on this transaction. Despite the severe disruptions brought by Covid-19 in the second half of 2021, this transaction was concluded within six months. Vietnam remains an attractive destination for foreign investors during the pandemic, driven by a promising macroeconomic outlook, growing consumer base, and rapidly rising internet economy.”
Karen Cheung, Managing Director, Head of Consumer & Retail Asia, BDA Partners, said, “This marks the first investment of Quadria Capital in the fast-growing retail space in Vietnam. We look forward to seeing Con Cung’s strong expansion in the near future with the support from Quadria Capital, given the surge in demand for quality M&B goods, and the shift in consumer behaviour towards omni-channel retail. This transaction demonstrates BDA’s expertise in cross-border execution, and reaffirms our strong ability in the consumer sector.”
Deal team
Huong Trinh, Managing Director, Ho Chi Minh City
Karen Cheung, Managing Director, Hong Kong
Pius Sutopo, Vice President, Singapore
Yen Pham, Associate, Ho Chi Minh City
Minh Pham, Analyst, Ho Chi Minh City
Doug Nguyen, Analyst, Ho Chi Minh City
Danny Nguyen, Analyst, Ho Chi Minh City
About Con Cung
Con Cung operates the largest retail chain for mother and baby products in Vietnam. The company was founded in 2011 and is headquartered in Ho Chi Minh City, Vietnam. www.concung.com
About Quadria Capital
Quadria Capital is an independent healthcare focused private equity firm, with assets under management exceeding US$2.2bn and investments in 21 companies across the Asia-Pacific region. www.quadriacapital.com
About BDA
BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with 25 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul, and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes. BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese government-owned bank with US$150bn of assets.
US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc., a broker-dealer registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc. is a member of the Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorised and regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd. is licensed and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated activities to professional investors. www.bdapartners.com
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