BDA advises Con Cung on sale of minority stake to Quadria Capital

BDA Partners is pleased to announce that its clients, the shareholders of Con Cung Investment Corp (“Con Cung”), have sold a minority stake to Quadria Capital. The co-founders of Con Cung will continue to drive the growth of the company, with the support of Quadria Capital and existing institutional shareholders. Part of the proceeds will be used to support further growth of Con Cung.

BDA was the exclusive financial advisor to Con Cung.

Con Cung is the leading mom-and-baby (“M&B”) retail chain in Vietnam, with nearly 600 stores across 48 provinces. As the one-stop M&B solution provider, Con Cung has a diversified product portfolio including baby food, diapers, childrenswear, toys, and personal care products, both private label and third-party brands.

The Company possesses an integrated management system covering all business aspects (from store development, merchandising, planning, logistics to finance and accounting). Con Cung’s system helps to ensure efficient daily interaction between business functions, minimize labor cost, keep track of store performances in real-time basis, as well as optimize store assortment and inventory management.

On the back of its strong IT foundation, the Company has been able to quickly expand its store network and to develop an integrated omni-channel business model. Con Cung’s mobile app offers a customized, seamless shopping experience to customers from online to offline, and aims to be the leading e-commerce “super-app” with quality M&B products and personalized solutions for Vietnamese families.

Nguyen Quoc Minh, Chairman of Con Cung, said, “Over the last ten years, Con Cung has grown rapidly to become the leading, top-of-mind mom and baby retailer in Vietnam; and our strong technology background has helped us to capture the rapidly growing internet economy and online shopping trend in recent years in Vietnam. Leveraging our market leadership in the country, the partnership between Con Cung and Quadria Capital will prepare the company for its next phase of growth, with the focus on expanding the store network, developing the omni-channel model, and generating a differentiated experience for customers.”

Ewan Davis, Managing Director of Quadria Capital, said, “The Covid-19 pandemic has shown how important it is for us to prioritise health and wellbeing. We are proud to partner with Con Cung to provide easy access to essential healthcare products and services in Vietnam, especially to the vulnerable population such as growing families with infants and young children. Con Cung has done a tremendous job in building a market leading platform that addresses such unmet needs and we are excited to come on board to support its next phase of growth.”

Huong Trinh, Managing Director, Head of Ho Chi Minh City, BDA Partners, said, “We are proud to have advised our clients on this transaction. Despite the severe disruptions brought by Covid-19 in the second half of 2021, this transaction was concluded within six months. Vietnam remains an attractive destination for foreign investors during the pandemic, driven by a promising macroeconomic outlook, growing consumer base, and rapidly rising internet economy.”

Karen Cheung, Managing Director, Head of Consumer & Retail Asia, BDA Partners, said, “This marks the first investment of Quadria Capital in the fast-growing retail space in Vietnam. We look forward to seeing Con Cung’s strong expansion in the near future with the support from Quadria Capital, given the surge in demand for quality M&B goods, and the shift in consumer behaviour towards omni-channel retail. This transaction demonstrates BDA’s expertise in cross-border execution, and reaffirms our strong ability in the consumer sector.”