CLSA buys Japanese beauty salon chain
CLSA Capital Partners (CLSA CP) has agreed to invest at least JPY10 billion ($94.3 million) to take a majority stake in Japanese beauty salon operator Agu Group. It is the firm’s second acquisition in the country this week.
The Agu investment was made via the Sunrise Capital III fund, which closed last year at a hard cap of $400 million. It coincides with the acquisition of advanced industrial services company HamaEngineering for an undisclosed sum via an existing portfolio company bolt-on.
Agu, also known as KK Loiness and B-first KK, has established a franchise of 271 salons nationwide since its founding in 2009. This footprint is expected to grow to about 1,000 locations, with CLSA CP appointing three directors to the board of the company to help with administrative, marketing and planning activities. There will be no material changes to the company’s management policies or business operations.
“Despite the fierce competition within the beauty salon industry, the company has achieved 100 new store launches in 2017,” Megumi Kiyozuka, head of Sunrise Capital, said in a statement. “We believe that the Agu Group has significant potential to be a game-changer, impacting the entire industry.”
HamaEngineering was acquired by Outsourcing Investments (OSI), a business staffing services company that is 100% owned by CLSA CP’s Sunrise Capital II fund. HamaEngineering is touted as a niche leader in outsourcing maintenance services for the semiconductor manufacturing industry. The company is expected to leverage OSI’s hiring and client network.
CLSA CP’s Sunrise funds target leveraged buyouts of companies with enterprise valuations of JPY5-15 billion across sectors including consumer products, healthcare, retail, logistics, and manufacturing. Recent activity includes the acquisition of uniform rental business Marubeni Mates for an undisclosed sum.
More on North Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.