Private Equity firm PAG Asia Capital (PAG) announced Monday that it had invested an undisclosed amount in Paradise Group Holdings Pte. Ltd. (Paradise Group), one of the leading restaurant groups in Southeast Asia. Industry executives aware of the transaction told the portal that this could perhaps be the largest F&B deal in the region, that values the restaurant chain, which has over 60 outlets, at around $100 million.
The current shareholders of Paradise Group, Eldwin Chua and Edlan Chua, will remain significant shareholders in the company and will remain in their current positions. Further details of this transaction are undisclosed.
PAG Asia Capital is the private equity arm of PAG, one of Asia’s largest alternative asset management firms, with funds under management across private equity, real estate and absolute return strategies. It currently reports to have $16 billion in capital under management, with 380 staff across its Asia offices.
Established in 2008, Paradise Group operates over 60 outlets in Singapore, with a global footprint that extends to major markets like China, Japan, Indonesia and the UK, as well as markets like Malaysia, Dubai, the Philippines, Myanmar, and Taiwan. It maintains multiple dining concepts focused on Chinese cuisine, as well as a Thai dining concept.
Founded by CEO Eldwin Chua, Paradise Group claims to have grown rapidly from two locations less than 10 years ago into one of the largest and most well-known Chinese restaurant groups in the region, offering various dining concepts to cater to different pricing points and cuisine styles.
Eldwin Chua commented, “We are delighted by the prospect of partnering with PAG and look forward to great success with their backing. PAG’s presence and relationships across Asia are highly complementary to our growth plans.”
Speaking on the development, Weijian Shan, Group Chairman and CEO of PAG, said, “We look forward to working with Eldwin and Edlan Chua. The management team of Paradise Group have built an impressive franchise with great potential for future growth, particularly in China.”
“We believe that our investment and operational expertise, combined with Paradise Group’s brand and capabilities, will help the company further expand its footprint throughout Asia,” Shan adds.
The investment comes at a time when the Asia Pacific (APAC) food and beverage industry is expected to achieve a turnover of $3.23 trillion in 2016 after growing to almost the same level as the rest of the world combined.
An article from Asia Pacific Food Industry notes that with a projected year-on-year growth of 11 per cent in 2016, the industry will outpace the second and third largest regions – Western Europe and North America – which will see relatively modest expansion rates of 2 per cent and 4 per cent respectively.