Polaris carves out beverage business from Asahi

The firm will pay an undisclosed amount for all the issued shares of LB, according to a filing. Asahi is looking to streamline its operations by focusing on its core business of alcoholic beverages and selling soft drink businesses like LB. The company said divesting LB to Polaris will allow both businesses to grow sustainably by focusing on their main strengths.

LB was established in 1956 and initially focused on probiotic dairy products before branching out into other chilled beverages such as green tea and black vinegar. In 2005 the company was acquired by Asahi, which integrated the previously independent Nagoya and Tokyo branches into a single business. LB currently claims over 50% market share in chilled green tea beverages.

For the year ended December 2016, LB reported revenue of JPY21.8 billion ($191 million), down from JPY22.6 billion the year before, while net profit grew from JPY303 million to JPY371 million. Over the same period, the parent company’s revenue grew from JPY1.69 trillion to JPY1.71 trillion while net profit grew from JPY74.6 billion to JPY87.1 billion, according to the most recent annual report.

Polaris is investing from its fourth Japan fund, which closed earlier this year at the hard cap of JPY75 billion, with commitments split about 50-50 between domestic and offshore LPs. The fund invests in mid-cap companies that are not realizing their growth potential due to legacy constraints, and aims to introduce initiatives aimed at revitalization. 

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• North Asia
• Consumer
• Industrials
• Buyouts
• Japan
• Polaris Capital