Integral acquires majority stake in Tokyo-listed wig maker

The private equity firm submitted an offer of JPY620 per share on October 14, a 29% premium to the previous close. It succeeded in acquiring approximately 26 million shares plus rights to a further 1.55 million shares, according to a filing. This will give Integral a 74.8% stake in the company. Nobuo Nemoto, chairman of Aderans, will retain his 14.2% interest.

Nemoto established the company in 1970 under the name Fontaine in order to sell wigs made by Kaneka. It listed as Aderans in 1987 and joined the First Section of the Tokyo Stock Exchange 10 years later. The company produces wigs under the Aderans and Fontaine brands and provides hair transplant and restoration services under Bosley and Hairclub.

Sales came to JPY79.2 billion for the 12 months ended February 2016, up from JPY76.7 billion the previous year. However, the company swung from a net profit of JPY5.01 billion to a net loss of JPY1.86 billion. Aderans blamed the deterioration in performance on a fall in sales of women's wigs as well as rising costs in the transplant and restoration businesses.

Integral is making the investment through its second fund, which closed in 2014 at JPY44.2 billion. The firm is said to be targeting JPY70 billion for its next vehicle. Aderans represents the first of two tender offers Integral has in process, following the submission of a bid for electronics manufacturer Ohizumi last month.

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• Topics
• North Asia
• Buyouts
• Consumer
• Japan
• Integral Corp.