KKR sees 5x return on Japan's Intelligence Holdings - Update

The deal - which will also see company management sell its stake in the business - is subject to customary closing conditions and domestic regulatory approval and is expected to be completed next month.

KKR acquired Intelligence from parent company Usen Corporation, for JPY32.5 billion ($356 million) in July 2010.

During its three-year holding period Intelligence is said to have increased its revenues by 45%, EBITDA by 170%, and operating profits by 431%. The total number of employees at Intelligence also increased from 4,370 to 5,981.

Established in 1989, Intelligence offers several services including permanent job placement, job advertising media, temporary staffing and outsourcing. Temp Holdings is one of Japan's largest comprehensive recruitment services companies and is in the process of expanding its business in Asia.

The two companies will have combined revenues of more than JPY320 billion and an EBITDA of more than JPY21 billion. According to a statement put out by the companies, the market for HR services in Japan had grown significantly over the last 25 years as traditional employment patterns have evolved and developed, and companies look to restructure and expand globally.

"Thanks to their incredible energy and vision, Intelligence has achieved very strong and sustained growth and profitability," said Shusaku Minoda, managing director and CEO of KKR Japan. "The success of this partnership provides a firm foundation for our plans to further develop our business in Japan."

Earlier this month KKR boosted its Japan team with the appointment of Hiro Shimizu and Sakae Suzuki as directors. The private equity firm now has 12 people in its Tokyo office.

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• Topics
• North Asia
• Buyout
• Exits
• Japan
• KKR
• Exit
• buyout
• Trade sale