Tags: Suntory | M&A | Japan | beverages

Suntory Set to Evaluate M&A Targets With $4.9 Billion for Deals

Tuesday, 09 Jul 2013 11:15 AM

Suntory Beverage & Food Ltd. will start discussing acquisition targets as early as September as it prepares to spend up to 500 billion yen ($4.9 billion) on deals after Asia’s biggest initial public offering this year.

The company’s five-member mergers-and-acqusitions team, led by a former Bank of America Corp. banker, will begin discussing more than 100 targets with board members, Nobuhiro Torii, the company’s chief executive officer and president, said in an interview in Tokyo today.

The drinks and food unit of Suntory Holdings Ltd. is targeting 200 billion yen of operating profit by 2020, more than triple the current level, he said. Torii and other executives at the company plan to buy the company’s shares this year, the 47- year-old executive said.

Suntory Beverage, which started trading on July 3 after raising almost $4 billion in its public offering, gained 3.1 percent to a record 3,375 yen in Tokyo trading today.

The seller of Orangina soda and Boss coffee plans to double sales to 2 trillion yen by 2020 partly through acquisitions. The Tokyo-based company in March hired Haruhisa Inada, a former co-head of the investment banking division at Merrill Lynch Japan Securities Co., a unit of Bank of America, to lead the M&A team it set up in January, Torii said.

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