Comcast to buy majority stake in PE-owned Universal Studios Japan

The US-based cable operator described the investment - its biggest ever overseas - as a recapitalization transaction. The current owners will stay on as minority shareholders. Representatives of the parties involved told a press briefing that the enterprise valuation of the business is JPY750 billion, including JPY400 billion in debt.

USJ was established in 1994 as a joint venture between the government of Osaka and several private investors. The theme park opened in 2001 and is one of four movie-themed Universal Studio parks globally.

Goldman invested $180 million in USJ in 2005 and it went public two years later. Then in 2009, with visitor numbers falling, a Goldman-led consortium - which included MBK, Owl Creek and Glenn Gumpel, USJ's CEO - delisted the business at an enterprise valuation of JPY165 billion, including JPY111 billion in equity.

PAG invested $250 million in December 2013, with part of the capital earmarked for adding a themed area - The Wizarding World of Harry Potter - to the existing nine areas.

The park features classic Universal attractions as well as attractions and shows specifically designed for the Japanese market. USJ's sales reached JPY138.5 billion for the 12 months ended March 2015, up 44% year-on-year, while operating profit rose 61% to JPY39 billion, Bloomberg reported, citing a USJ spokesman. Visitor numbers for the year came to a record 12.7 million, up from 10.5 million in 2014.

"We are excited to expand our global footprint with this wonderful theme park in Osaka and are excited by the opportunities that lie ahead in Japan and all of Asia," said Brian L. Roberts, Chairman and CEO of Comcast, in a statement. "This investment represents a huge opportunity and commitment to creating value for our shareholders and continuing to grow internationally."

Comcast owns Universal Studios and Universal Theme Parks through its NBCUniversal unit. It wholly owns parks in Hollywood and Orlando, while the parks in Japan and Singapore operate under licensing arrangements. The company has announced plans to open a theme park in Beijing and may develop an indoor facility in Moscow.

Earlier this year, Comcast abandoned a $45.2 billion deal to buy Time Warner Cable due to opposition from regulators.

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• Topics
• Exits
• Media
• Consumer
• North Asia
• Media
• Consumer
• Japan
• Exit
• Trade sale
• MBK Partners
• PAG
• Goldman Sachs