J-Star buys Japanese consumer brand Sun Smile

According to a statement, the private equity firm plans to help Sun Smile enhance its online sales efforts, add new products and enter overseas markets through improved marketing. The GP will also help to institutionalize the company's management team and internal structure to improve its competitiveness. Financial details of the deal were not disclosed.

Sun Smile produces its own lifestyle brands, including its flagship Pure Smile line, with products including cosmetics, accessories, bags and sundries for young women. It also imports well-known brands from overseas to sell in Japan. J-Star believes the company has the potential to take a leading role in Japan's increasingly competitive lifestyle products market with the assistance of an experienced investor.

The GP made its investment through its third Japan-focused buyout fund, which reached a final close of JPY32.5 billion ($291 million) earlier this year. J-Star targets control and co-control investments in companies with valuations of JPY3-10 billion, typically writing checks of JPY1-3 billion.

J-Star's investments typically pursue industry consolidation strategies through bolt-on acquisitions. Recent examples include the purchase of veterinary services chains Fuji Field and VIS Corporation through the GP's pet services platform JVCC and the addition of aged care provider Live Cross to healthcare company Kairos Tokyo.

A number of Japanese middle-market buyout funds, including Advantage Partners, CLSA Capital Partners, Integral Group and Tokio Marine Capital, closed around the same time as J-Star. In all, according to AVCJ Research, eight Japanese buyout funds have reached final close so far this year, with more than $2 billion committed.

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• Topics
• North Asia
• Buyouts
• Consumer
• Japan
• J-Star