MBK-owned Komeda Coffee wins approval for Japan IPO

According to a regulatory filing, MBK will sell 26.7 million shares plus up to four million more if the overallotment option is exercised. The indicative selling price is JPY1,960 per share. Pricing terms will be set on June and the company is scheduled to begin trading on June 29.

MBK currently holds a 94.55% interest - or 43.8 million shares - in Komeda. It acquired most its stake from Advantage Partners in early 2013 for an estimated JPY40 billion. This translated into a 7x return for the domestic GP, which bought a 78% interest in the business less than five years earlier for JPY15 billion.

The first Komeda Coffee shop was opened in 1968 by Taro Kato and by the time Advantage invested it had approximately 300 stores. Kato brought in a third-party investor because he recognized that management needed to be professionalized in order to scale the business efficiently. During Advantage's ownership period, Komeda opened nearly 200 new stores and revenue more than doubled.

As of April 2016, the company had 689 outlets, the majority of which are run on a franchise basis. It had 232 full-time employees and around 459 part-time staff. Revenue came to JPY21.7 billion for the year ended February 2016, up from JPY19.2 billion 12 months earlier. Net profit rose from JPY3.22 billion to JPY4.12 billion over the same period.

MBK invested in Komeda through its third fund, which closed at $2.7 billion in October 2013. The GP is said to be preparing to launch Fund IV. A trade sale process is currently underway for another of the Fund III assets, ING Life Korea; MBK paid $1.6 billion for a 10% stake in the business in 2013.

 

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• Topics
• North Asia
• IPO
• Consumer
• Japan
• MBK Partners
• Exit