Japan Industrial Partners buys Narumiya from SBI

The sale was confirmed by Narumiya on its website and by SBI in its quarterly earnings presentation released last week. SBI noted that sale of its stakes in Phnom Penh Commercial Bank (PPCB) and Narumiya had generated approximately JPY14 billion ($136.4 million); an earlier filing indicated the PPCB transaction was worth $134 million.

Founded in 1904 as a kimono fabric dealer, Narumiya started selling women's knitwear in 1968 and took on its current name in 1979. It entered the children's clothing space six years later, establishing a range of in-house brands as well as licensing international marques. The company listed on JASDAQ in 2005 and SBI took a 58% stake two years after that. SBI assumed full ownership in 2009 through a tender offer worth JPY1.14 billion.

Narumiya had 681 stores and approximately 1,400 staff as of February, with net sales for the 2016 financial year reaching JPY20.7 billion. According to Nikkei Asian Review, SBI has worked on improving the company's financial performance after sales dropped to JPY13 billion in 2010. The divestment is linked to SBI's desire to focus on its core financial services and technology interests.

JIP, which closed its most recent fund at JPY67.4 billion in 2013, specializes in corporate carve-outs and restructuring transactions. Last September it completed the acquisition of KM Aluminum from Mitsui & Co, and before that bought Sony's loss-making Vaio PC division and NEC-owned internet service provider Biglobe. It also participated in the Bain Capital-led purchase of restaurant chain Skylark, which re-listed in 2014.

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• Topics
• North Asia
• Buyouts
• Consumer
• Japan
• Japan Industrial Partners
• SBI Holdings