Polaris acquires Japanese salon operator
Polaris Capital has acquired a majority stake in Japanese salon and sports club operator Socie World for a reported JPY3 billion ($32 million). The capital came from the private equity firm’s third vehicle, which has so far raised JPY36 billion, just short of its JPY40 billion target.
Polaris said it had bought "close to 100%" of Socie World from current shareholders including Citigroup Capital Partners. According to AVCJ Research, the company also received JPY10 billion from Nikko Principal Investments in 2007.
Socie World operates beauty spas and hair salons and sports clubs for middle to high-end customers. It has been in business for more than 30 years, opening outlets in high-class department stores and luxury hotels. The company has also established itself in Taiwan and now hopes to penetrate the China market.
Polaris will deploy several directors to work with the Socie World management team, supporting marketing and promotional activities and providing managerial and financial advice.
The private equity firm said that Socie World "should be able to further solidify its leading company position in the aesthetic salon industry and increase its corporate value by expanding its customer base and building an enhanced management infrastructure."
Polaris Private Equity Fund III launched in October 2011 and reached a first close of JPY20 billion nine months later, with a JPY4 billion commitment from the Organization for Small & Medium Enterprises and Regional Innovation. Its previous fund closed at JPY31.9 billion in July 2008 after about eight months in the market.
Recent investments include the acquisition of a 30% voting stake in Myland Real Estate. Last month Polaris agreed to exit its entire stake in SFP Dining - which owns and operates about 90 outlets under Toriyoshi Japanese-style fried chicken brand and the Isomaru Suisan fresh seafood bar brand - to Create Restaurants Holdings. Polaris and Newcopia Capital Management sold a 74.6% interest to Create for JPY6.57 billion.
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