J-Star exits Japan's Aisei Pharmacy to management team

The GP said in a statement that Aisei needed to focus its resources on strengthening mall development skills and managing its pharmacist network following changes in government policy designed to cut healthcare expenditure. Selling to management is seen as the best way for the company to retain the talent required to achieve these goals.

J-Star completed its acquisition of JASDAQ-listed Aisei in February 2016. It was the private equity firm's first-ever tender offer. The deal coincided with a slowdown in the pharmacy industry due to reductions in government-set drug fees and competition from numerous other small-scale drug store chains. These conditions were a potential driver of consolidation.

Aisei has 342 stores in Tokyo, Nagoya, and Osaka. It follows a mall-style approach where a number of different clinics are operated in a single facility. The company reported revenue of JPY55 billion and EBITDA of JPY3.6 billion in the 2015 financial year.

Separately, J-Star has acquired clothing retailer Bodyline for an undisclosed sum. The GP will help the company standardize supply chain management, improve marketing and merchandising efforts, develop its e-commerce capabilities, and pursue cross-border expansion opportunities.

J-Star closed its third fund in April 2017 at JPY32.5 billion. It targets control and co-control investments in companies with valuations of JPY3-10 billion ($27-89 million), typically writing equity checks of JPY1-3 billion.

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• Topics
• North Asia
• Trade sale
• Healthcare
• Buyouts
• Consumer
• Japan
• J-Star
• Exit