Singaporean investment heavyweight Heliconia Capital Management Pte Ltd has finalized its acquisition of Wine Connection, the leading operator of wine shops and restaurants in Southeast Asia, in a deal reportedly valued at US$100 million.
The major acquisition comes as the wine industry in Southeast Asia, a region with a population nearing 700 million, is earmarked for a post-pandemic boom.
Current market data shows the region accounting for a wine retail value of US$1.4 billion. The IWSR predicts an average annual growth of 7% in both volume and value through 2026, driven by increasing incomes, returning tourism, and a rising demand for premium alcoholic beverages.
Founded in 1998 in Thailand, Wine Connection has steadily grown the number of wine retail shops and diversified into the full-service restaurant business by introducing the integrated retail wine shop and restaurant concept, becoming the leader in Thailand and Singapore with 81 outlets to date.
Anchored in the masstige value proposition, Wine Connection occupies a sweet spot between mass and prestige, offering a diverse selection of high-quality products at an affordable price. It has more than 300 different wine labels in its portfolio for its bistros and wine retail shops, making it one of the largest wine importers in Southeast Asia.
According to earlier reports, the sale was estimated around US$100 million, while there are other sources speculating that the price was calculated based on a 7x EBITDA multiple. The final sale price was not disclosed by both sides.
Wine Connection operates 27 wine shops, 41 restaurants in Thailand, and 31 wine shops, 14 restaurants in Singapore, according to its website.
Heliconia, which is backed by Singapore sovereign fund firm Temasek, has extensive portfolios throughout Southeast Asia, mainly in tech, medical, F&B and healthcare sectors. Its previous investments in related assets include Singapore-based F&B group RE&S Holdings, Little Farms, restaurant group Jumbo and Kimly, one of the largest coffee shop operators in Singapore, according to its website.