CVC Asia V Invests in Samator Indo Gas, Indonesia’s Leading Industrial and Medical Gas Company
By Press Release15 March 2023
Jakarta, 15 March 2023 – PT Samator Indo Gas Tbk. (the “Company” or “Samator Indo Gas”) (Bloomberg Code: AGII IJ) (previously PT Aneka Gas Industri Tbk) announced today that Matrix Company Limited, an investment holding company invested in by funds (“CVC Funds”) advised and/or managed by CVC Capital Partners (“CVC”), has acquired a significant minority stake in the Company from existing shareholders for approximately US$155 million. The Harsono family will continue to hold a majority stake in the Company and retain control of the Company.
CVC is a leading global alternative investment manager with €137 billion of assets under management and a strong track record of investments in Indonesia having made 7 (seven) other investments in the country. Leveraging CVC’s global network and experience, the investment will bring significant benefits to the Company including transfer of global knowledge and sharing of best practices. Samator Indo Gas will be able to further grow and strengthen its position in Indonesia’s industrial and medical gas industry. This will benefit the Company, its employees as well as all of its partners across the country.
Rachmat Harsono, President Director of Samator Indo Gas, said “CVC Funds’ investment in a home-grown, family-owned business is a testament to the quality and strength of the business developed throughout its long heritage. It also highlights global investor confidence in the attractive growth prospects of Indonesia. We look forward to working with our new partner to further grow the Company and bring Samator Indo Gas to greater heights.”
Imelda Harsono, Director of Samator Indo Gas, added “We have identified the best partner for Samator Indo Gas. CVC’s successful track record in both Indonesia and the global industrial gas industry will bring significant benefits to the Company as well as its stakeholders. The Company will benefit from CVC’s deep industry experience and resources to further expand within the country. We are excited to embark on this journey with CVC.”
Andy Purwohardono, Partner and Head of CVC Indonesia, noted, “This marks our 8th investment in Indonesia since 2010 and we continue to believe in the strong economic potential in the country. We not only see this investment as an opportunity for us to back a successful business in the next stage of its growth journey, but also to contribute to the continued development of Indonesia’s economic output.”
Upon the creation of this new partnership, the Company has several expansion plans in the near future, including the upcoming new plant in Kawasan Industri Terpadu Batang (“KITB”), Central Java, Indonesia. The Company is scheduled to start construction in March 2023 and approximately up to IDR500-600 billion of capital expenditures will be allocated to support the construction phase until end of 2024. The Company had previously announced its first customer in KITB, KCC Glass Corporation, which will build one of the largest glass factories in Southeast Asia. Moreover, the Company intends to not only serve the industrial and medical gas needs in Central Java, but also aims to further develop its pipeline business to serve tenants in KITB, which is planned to become an area that will support the development of Indonesia’s electric vehicle industry.
In the next 2-3 years, the Company aims to grow sales at a rate of up to twice the National GDP growth rate, and targets to achieve double-digit net profit margin through operational optimizations as well as strategic commercial initiatives. In addition, the management will continue to assess and, if deemed suitable, pursue both organic and inorganic growth strategies.
UBS acted as exclusive financial advisor on the transaction.
For full document, please click here.