KKR INVESTS IN VATS LIQUOR STORE TO CAPITALIZE ON THE FAST
GROWING LIQUOR DISTRIBUTION MARKET IN CHINA
NEW YORK and BEIJING, Dec. 16, 2010 /PRNewswire-Asia/ -- KKR today
(15 Dec. - USA / 16 Dec. - Asia) announced its investment, through
its funds, in VATS Liquor Store ("VATS" or "the Company"), the
largest nationwide liquor store chain operator in China.
"KKR is a world-class institutional investment firm and a
pioneer in the global private equity industry, with an outstanding
investment track record globally and within China," said Mr.
Xiangdong Wu, Chairman of VATS. "We are proud to have KKR as
our shareholder, which validates VATS' long-term growth potential
and proven business model. We truly appreciate KKR's investment
philosophy of partnering with management to add value for portfolio
companies. KKR's extensive expertise in the global consumer and
retail space will bring tremendous value to VATS both in advancing
our operational capability and maintaining sustained and rapid
growth."
According to China's National Bureau of Statistics, annual sales
of China's white liquor market are approximately $27 billion and
the consumption of bottled white liquor has grown at 20% CAGR in
the past five years. The partnership between VATS and KKR marks a
collective effort to seize the growth opportunity in China's liquor
industry, and to promote healthy development of the market.
"We are excited to be partnering with VATS, the leading
franchise in China's liquor distribution industry," Xiang Li,
Managing Director of KKR Greater China, said. "We look
forward to fully utilizing our global resource and expertise,
working closely with the outstanding management team at VATS to
support the future development of the Company."
About VATS
Founded in May, 2005, VATS operates more than 270 liquor stores
covering all provinces in mainland China. The Company thrives on
providing customers with high quality authentic liquor products
through its extensive nationwide retail network. The Company holds
sole distribution rights to a diversified and valuable portfolio of
leading premium Chinese liquor brands, including Wuliangye Vintage
Series, Guyuelongshan Vintage Series, Zhenjiu and Xiangjiao. The
Company also distributes local premium wine brand Shangri-la wine,
top French wines such as "Petrus", "Lafite"," Latour" and scotch
whiskey "Laphroaig".
About KKR
Founded in 1976, KKR is a leading global investment firm with
$55.5 billion in assets under management as of September 30, 2010.
With over 14 offices around the world, KKR manages assets through a
variety of investment funds and accounts covering multiple asset
classes. Since inception, KKR has completed multiple private equity
investments with a total transaction value in excess of $430
billion and the portfolio companies in the firm's private equity
funds have over $200 billion of annual revenues and more than
900,000 employees. KKR seeks to create value in its private
equity investments by working as a partner with management and
bringing global resources and operational expertise to its
portfolio companies. KKR invests in high-quality franchises across
multiple industries and geographies, including Asian investments
such as International Far Eastern Leasing, China Modern Dairy, and
Oriental Brewery, among many others, and current and previous
retail and consumer product investments such as Del Monte, Sealy,
Dollar General, Pets at Home, WILD, Duracell, Gillette, RJR Nabisco
and Safeway. KKR is publicly traded on the New York Stock Exchange
(NYSE: KKR). For additional information, please visit KKR's website
at www.kkr.com.
KKR Media Contacts
U.S.
Peter McKillop or Kristi Huller
Phone: +1-212-750-8300
Email: [email protected]
Hong Kong
Susannah Geary, Kreab Gavin Anderson
Tel: +852-2218-9919
Mob: +852-9162-9423
Email: [email protected]
SOURCE KKR