Investment in transport provider the second by Mekong Capital fund.
Mekong Capital’s Mekong Enterprise Fund III (MEF III) has announced its second investment, in ABA Corporation, a temperature controlled transport provider.
The amount of the investment was not disclosed but a representative from Mekong Capital told VET that MEF III typically targets investments ranging from $6-15 million and can make both minority and buy-out investments.
Founded in 2008, ABA began as a temperature controlled transport provider and in 2016 entered the cold storage business through the acquisition of a cold storage facility in Hanoi with around 12,000 pallet positions. The company is now rapidly evolving towards providing an integrated cold chain logistics service in Vietnam.
“The company has established itself as a leading cold chain transport service and solutions provider in Vietnam,” said Mr. Chad Ovel, Partner at Mekong Capital. “The company’s competitive edge is its dedicated management team, with a commitment to flawless integrity: right product, right time and right temperature, with a track record in providing high quality services.”
Mr. Ovel believes that with Mekong Capital’s well-proven approach towards adding value as a shareholder and its extensive network of international experts and resources, ABA will improve their operations, building a stronger management team while deploying world class transportation best practices. “ABA will grow at a rapid pace and compete successfully against multinational competitors,” he added.
ABA’s transport business is divided into three key business segments: temperature controlled transportation services, delivery services, and distribution services. ABA’s cold storage provides cold storage, cross-docking and other value added services.
It serves several of the largest modern trade retail and consumer goods companies in Vietnam, including Big C, VinMart, Metro, Unilever, and BEL.
“We are excited and confident in this partnership,” said Mr. Luong Quang Thi, Founder and CEO of ABA. “Mekong Capital became ABA’s companion as we share common cultures and values with a long-term strategic vision. This combination facilitates us in strengthening our management team, approaching world best practices and improving service quality to ready us for a rapid and sustainable growth.”
Launched in May 2015, MEF III is a private equity fund and currently has $112.5 million in committed capital. It focuses on investments in Vietnamese consumer-driven businesses such as retail, restaurants, consumer products, and consumer services.