Japan's J-Star invests in restaurant, auto businesses

Financial terms of both deals were not disclosed. J-Star made the investments from its third buyout fund, which closed last year at the hard cap of JPY32.5 billion ($291 million) and targets control and co-control investments in companies with valuations of JPY3-10 billion.

Sanwa operates eight car dealerships in Aichi Prefecture, along with a car customization service under the LDJ Design brand. It also offers leasing products for customers that include inspection fees and auto taxes. J-Star said in a statement that it plans to support Sanwa's business development, primarily through helping the company add new locations.

Section Eight operates casual dining restaurant chain Aiseki-ya and standing bar chain The Public Stand, both of which target young unmarried Japanese people and seek to provide an environment for social mingling. The business model is similar to that of Echigoya, which J-Star acquired last month, though in its statement J-Star did not describe the Section Eight deal as a bolt-on.

Bolt-ons have become an important part of J-Star’s strategy. The firm’s platforms include pet services company JVCC, which made three acquisitions last year, and hospice home operator Japan Hospice Holdings, which the firm created in 2014 with the acquisition of Nurse Call and Kairos.

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• Topics
• North Asia
• Consumer
• Expansion
• Buyouts
• Japan
• J-Star
• automobiles
• Growth capital