Japan’s J-Star sees 3x return on Apo Plus Station

Qol has acquired Apo Plus in full, including a 19.8% stake held by chairman Tsuneko Hibino, for JPY3.2 billion ($40 million). Market sources estimate that J-Star has made a more than 3x return on its investment.

According to AVCJ Research, J-Star invested JPY430 million in Apo Plus in 2010 alongside some unnamed foreign co-investors for a 66% stake. The purchase was channeled through Pacific Minato, a Cayman Islands-incorporated entity.

With J-Star's backing, APS went on to acquire Synergy International, a provider of communication and advertising content to healthcare and medical professionals, in September 2010. J-Star increased its exposure further last year when APS has purchased a 40% stake in EBM, a clinical examinations specialist.

Gregory Hara, president of J-Star, described the acquisition as a "win-win situation" for APS and QOL.

"When QOL announced its strategy in March it said it would focus on non-pharmacy businesses to create a more evenly diversified or well-balanced portfolio," Hara added. "They see a synergy between the pharmacuetuical business and the contract sales business, so the transaction is beneficial for both parties."

Last month J-Star exited lifestyle marketing company Iki Iki to a subsidiary of Noritsu Koki Group. The deal value was not disclosed but Iki Iki's EBITDA was $12.5 million and companies of this nature usually trade at a multiple of 8-9x.

The private equity firm is currently in the market raising its second fund, which has a target of JPY15 billion.

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• Topics
• North Asia
• Exits
• Buyout
• Healthcare
• GPs
• healthcare
• Japan
• J-Star
• Exit
• Pharmaceuticals