MBK completes exit from Japan's Komeda with 5x return - update

The private equity firm sold 13.74 million shares - including the overallotment option - for JPY1,768 apiece, a 3% discount to the June 19 closing price, according to a filing. Komeda's stock closed on June 20 at JPY1,839.

MBK acquired a 94.55% interest in Komeda from Advantage Partners in 2013 for an estimated JPY40 billion. The North Asia-focused GP received JPY60.2 billion from Komeda’s IPO, selling 30.7 million shares for JPY1,960 apiece. It reduced its holding to 31.1%.

The first Komeda Coffee shop opened in 1968 and by the time Advantage invested in 2008 it had around 300 stores. During the PE firm’s ownership period, Komeda opened nearly 200 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 747 outlets, the majority of which are run on a franchise basis. Revenue came to JPY24 billion for the year ended February 2017, up from JPY21.7 billion 12 months earlier. Net profit rose from JPY4.12 billion to JPY4.52 billion over the same period.

MBK invested in Komeda through its third fund, which closed at $2.7 billion in October 2013. The private equity firm closed its fourth vehicle last December with $4.1 billion in commitments. Earlier this year, MBK completed its exit from Universal Studios Japan, generating what is said to be an 8x return.

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• Topics
• North Asia
• Open market
• Consumer
• Japan
• Exit
• MBK Partners