Japanese company picks up 23% in construction sector M&A.
Japan’s Koizumi will purchase 23 per cent of QH Plus on December 12 in an M&A deal, according to the VietinBank Securities Company (VietinBankSc), the consultants on the deal. The two will cooperate in developing building materials for Vietnam’s construction industry.
Under the agreement QH Plus will renew its business model and supply more professional building accessories. Koizumi’s products will be sold at QH Plus’s retail network and its products will, in turn, be sold by Koizumi.
CEO of VietinBankSc, Mr. Khong Phan Duc, said the cooperation between QH Plus and Koizumi will provide practical benefits for both, not only in product distribution but also in mutual support and enhancing their brand names.
The cooperation is considered is an important milestone for the building accessories and materials sector in Vietnam because it targets the domestic market. Predictions are that 2016 will see a strong recovery in the building industry.
QH Plus was founded in 2006 and focuses on steel trading and the manufacture of building materials and accessories in Vietnam. Its revenue 2014 was $90.63 million and is expected to be $100 million this year. The company has offices in Japan, China, Singapore, Laos, Cambodia, Malaysia, and the Philippines.
Koizumi is a major Japanese company in household equipment, with nine subsidiaries and more than 100 sales offices in the country. It not only supplies products to the domestic market but also exports plastic pipes, household equipment, building accessories, and electronic accessories. Its revenue in 2014 was $1.142 billion.
VietinBankSc is becoming more involved as a consultant on M&A deals in addition to its traditional consulting activities in listings and equitizations.
- QH Plus
- VietinBank Securities Company