Bain makes another partial exit from Japan's Skylark

The PE firm offloaded approximately 21.4 million shares at JPY1,635 apiece, representing a 4.89% discount to the March 27 closing price, according to a filing. Skylark stock dropped 4.25% during trading the following day, ending at JPY1,646. Bain’s stake in the company has fallen from around 40% to 28%.

Bain acquired a 100% stake in Skylark from Nomura Holdings for JPY160 billion in 2011. JIP participated in the same transaction as a minority investor. Bain generated JPY68.8 billion from the company's IPO in October 2014 when it shed a third of its stake. JIP reduced its holding from 2.2% to 1.5%, receiving JPY1.6 billion.

Another partial exit came in May 2015 as Bain sold 44.8 million shares for JPY71.8 billion, cutting its exposure to Skylark from 66% to approximately 40%. JIP also pared its sake, generating proceeds of JPY1.7 billion.

Skylark launched in 1970 as a family-style restaurant, akin to American eateries such as Denny's. The company primary operates under the Gusto brand, which offers Western-style cuisine and accounts for about half of overall revenue. It has more than 20 restaurant brands in total, covering Japanese, Chinese and Western cuisine.

As of June 2016, the company had 3,040 restaurants in Japan and Taiwan, either owned directly or operated on a franchise basis. Revenue came to JPY354.5 billion for the 12 months ended December 2016, up 1% year-on-year. EBITDA rose 11.1% to JPY45.9 billion, while net profit gained 20.5% to reach JPY18.2 billion.

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• Topics
• North Asia
• Consumer
• Open market
• Japan
• Bain Capital Asia
• Exit