SEAVI Advent Private Equity today announced that they have sold their stake in Nine Masters (Shanghai) Catering Services (the “Company”) to Joyvio Group, the food and agribusiness investment platform of Legend Holdings Corp. Terms of the transaction have not been disclosed.
Nine Masters is a catering management service provider that was founded in 2010. The Company uses on-site kitchens and central kitchens to provide catering management services to educational institutions, commercial buildings and corporations. In addition, the Company also engages in B2C commerce: through partnerships with convenience store chains and supermarkets, the Company is able to sell chilled, cooked meals and ready to cook products produced by its central kitchens. Nine Masters is headquartered in Shanghai, and currently employs 1680 employees who cater to 80,000 diners per day.
SEAVI Advent Private Equity made a significant minority investment in Nine Masters in 2013. Through the investment period, Nine Masters has demonstrated substantial growth and profitability: for the period from 2013 to 2016, revenue for the Company grew at a CAGR of 38%. Meanwhile, gross profit increased at a CAGR of 28% for the period between 2014 and 2016.
Nine Masters has developed into one of China’s leading providers of group-dining services and ready to cook products. A major catalyst of this growth has been the strong working relationship between SEAVI Advent Private Equity and the Company’s top tier management. Key to this relationship has been SEAVI’s hands-on approach to strategic planning, and improving sales tactics. SEAVI also worked with the Company to meet capital needs by facilitating introductions and organising fundraising rounds.