CREADOR, a private equity firm focused on long-term investments in growth-oriented businesses in Southeast Asia and India, has agreed to take a 30% stake in Loob Holding Sdn Bhd, the owner of the top regional lifestyle tea brand, Tealive.
In a joint statement, both companies expressed confidence that the strategic partnership would take Loob to the next level, especially given Creador’s track record in aiding in the regional growth of its investee companies.
Creador founder and CEO Brahmal Vasudevan said the firm chose Loob to be its first investment in the fast-growing food & beverage (F&B) sector as Tealive has grown to be the regional leader with over 650 stores in less than five years.
Brahmal cited Loob’s impressive revenue of RM307 mil and net income of RM58 mil for FY2020. This translated to a phenomenal three-year compounded annual growth rate (CAGR) of 56% in revenue and 180% in net income.
Despite the pandemic, Tealive’s multi-format outlets which include shoplots as well as outlets in malls and petrol kiosks and its omni-channel offerings via food delivery platforms have helped it maintain a stellar performance, he said.
He added this investment through Uttama Ltd, an affiliate of Creador IV LP, would enable Creador to participate in the growth story of Tealive which was already present in eight countries.
“The made-to-order tea market in Malaysia has been growing over 20% in the last few years and beverage chain per million population remains under-penetrated when compared with peers in the region and developed countries,” noted Brahmal.
“Loob’s management team’s exceptional marketing and execution capabilities have enabled them to add tremendous value and capitalise on fast-changing consumer trends in the F&B industry to establish a strong brand in the region.
Loob Holding founder and CEO Bryan Loo welcomed Creador as a strategic investor and partner, adding that the timing could not be better with Tealive’s plan to hit the 1,000th store milestone in Malaysia over the next three years.
“We have just celebrated our 600th store in Malaysia last month and we plan to open 100-150 stores each year moving forward,” he enthused. “We are always thankful for the strong brand loyalty and support shown by Malaysians and tea lovers in every market we go into.”
Loob is Creador’s 39th investment since inception in 2011. Nomura acted as the financial adviser on this transaction. – June 10, 2021
