KUALA LUMPUR: Ekuiti Nasional Bhd (Ekuinas) has divested its entire 60% stake in Coolblog Apps Sdn Bhd, a homegrown desserts and beverage company to private equity firm Archipelago Capital Partners for RM75mil.
In a statement, Ekuinas said the divestment of Coolblog had generated an internal rate of return (IRR) of 6.4% and a money multiple of 1.4 times the capital invested.
“Our investment in Coolblog has reached its maturity for divestment and we have implemented our value creation plan. It is also part of our careful investment strategy to secure positive IRR, in line with our move to crystallise our assets under Ekuinas Direct (Tranche II) Fund,” CEO Syed Yasir Arafat Syed Abd Kadir said.
“Based on its strong track record in the fast moving consumer goods (FMCG), experience in the Business-to-Consumers (B2C) retail space as well as in-house expertise in the food and beverage (F&B) sector, Archipelago has been selected as the right partner to advance and accelerate the performance of Coolblog. We are pleased to have Archipelago take over the reins of Coolblog’s continued growth in Malaysia and across the region,” he added.
Coolblog has over 270 stores in Malaysia offering more than 25 flavours and over 300 product variants.
Ekuinas invested in Coolblog in 2014 and the business has demonstrated a strong growth trajectory backed by a proven track record.
Ekuinas said sales increased from RM34mil to RM46.9mil from FY2017 to FY2019 with a compound annual growth rate (CAGR) of 17.4%. This was primarily driven by growth and stronger outlet performance nationwide, coupled with innovative and successful product offerings.
Jovasky Pang, the CEO of Archipelago, said: “We see tremendous potential in Coolblog. It has demonstrated robust growth as a business in terms of offerings and profitability. With the growing population and rising youth demographic in Malaysia, we see more opportunities to grow the business.”
Pang said Archipelago has been looking for the right entry-point to strengthen its regional F&B and consumer portfolio, and the opportunity to invest in Coolblog is timely.
“Moving forward, we will leverage our sizeable and established network across south east Asia to execute our vision and strategy for the company. We look forward to working closely with the management team, franchisees, suppliers and other stakeholders to continue the successful growth of Coolblog,” he said.
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