MBK makes partial exit as Komeda IPO raises $588m

The North Asia-focused private equity firm sold 30.7 million shares, including the overallotment option, at JPY1,960 apiece, according to a filing. This leaves the GP with an approximately 39% stake in Komeda, currently worth JPY32.7 billion. It acquired a 94.55% interest in the business from Advantage Partners in 2013 for an estimated JPY40 billion.

Komeda's stock opened at JPY1,867 on June 29 and had reached JPY1,912 by early afternoon trading.

The first Komeda Coffee shop was opened in 1968 by Taro Kato and by the time Advantage invested in 2008 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. The GP, which bought a 78% stake in the company for JPY15 billion, made a 7x return on its investment.

As of April 2016, Komeda 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
• MBK Partners
• Japan
• Exit