KKR invests into lifestyle products
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Private Equity firm KKR has taken up a “significant stake” in massage chair and lifestyle products group V3, the owner of the OSIM and TWG Tea brands. KKR’s investment is up to S$500 million in V3, valuing V3 at an enterprise value of about S$1.7 billion. However, Both parties declined to comment on the exact mix of equity and debt financing. KKR is making the investment from its Asian Fund III. What we know is that the investment by KKR represents more than 50 percent increase in enterprise value compared to when the group was taken private.
Ron Sim remains the Chairman, Chief Executive and Controlling Shareholder of V3. He said: “I am extremely pleased to welcome KKR as a significant shareholder in V3. I am confident this investment will position the company for our next phase of growth, starting with the immediate expansion of TWG Tea in Japan and the US and of OSIM in China. We would also be looking into M&A opportunities that are earnings accretive.”
KKR partner Jaka Prasetya said the investment underscores KKR’s strong belief in the continued growth of the region’s consumer sector: “We aim to provide support and capital to successful home-grown, regional companies like V3 in order to capture opportunities across Asia and beyond.”
Headquartered in Singapore, V3 has a presence in over 100 cities in 26 countries around the world. The largest chunk of V3’s revenue comes from sales of OSIM massage chairs.
V3’s annual revenue climbed back above the S$600 million mark last year, reversing the revenue decline owing to store closures in China in prior years. Profit also rose, Mr Sim said.
The luxury lifestyle and wellness industry continues to be a sector of exciting growth in Asia, proliferated by rapidly rising consumer affluence throughout the region.
Questions & Answers
Q.What is the primary business of V3, the company KKR has invested in?
What is the primary business of V3, the company KKR has invested in?
V3 is a lifestyle products group that owns the OSIM and TWG Tea brands. The largest part of its revenue comes from the sale of OSIM massage chairs.
Q.What are V3's immediate growth plans following KKR's investment?
What are V3's immediate growth plans following KKR's investment?
V3 plans an immediate expansion of TWG Tea in Japan and the US, and of OSIM in China. The company also intends to explore earnings accretive merger and acquisition opportunities.
Q.How large is KKR's investment in V3, and what is V3's current valuation?
How large is KKR's investment in V3, and what is V3's current valuation?
KKR's investment in V3 is up to S$500 million. This investment values V3 at an enterprise value of approximately S$1.7 billion.
Q.What was V3's revenue performance in the last year?
What was V3's revenue performance in the last year?
V3's annual revenue climbed back above the S$600 million mark last year. This reversed a previous revenue decline caused by store closures in China.
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