Financial details of the deal were not disclosed, but Mekong Capital typically invests between $6-12 million in each company from its Mekong Enterprise Fund III, which had hit final close of $112 million. The vehicle takes both minority stake purchases and buyouts in the companies it invests in.
ABA was founded in 2008 as a temperature-controlled transport provider. It recently entered the cold storage business through the acquisition of a cold storage facility in Hanoi. The company provides integrated cold chain solutions for industries such as pharmaceuticals, foods, dairy products and frozen goods. Its customers include several large retailers and consumer goods companies in Vietnam like Big C, VinMart, METRO, Unilever and BEL.
“The company has established itself as a leading cold chain transport service and solution provider in Vietnam,” said Chad Ovel, partner of the Vietnam-dedicated PE firm, adding that Mekong Capital will help the investee company compete against multinational players.
Mekong Capital’s latest fund was launched in 2015 and it recently announced its first investment in restaurant chain Wrap & Roll.
Consumer-driven businesses, such as retail, restaurants, consumer products and consumer services, have been the firm’s focus.
Meanwhile, the PE investor is looking to make divestments from its Vietnam Azalea Fund’s portfolio companies as the fund has spent its corpus. This unit focuses primarily on pre-IPO investments, including privatizations. Mekong Enterprise Fund II, which was incepted in 2006, has exited 7 out of 10 investments.