Tokio Marine sells Japanese food wholesaler to iSigma

Financial details were not disclosed. ISigma invested via its Business Advancement Fund II Investment vehicle, which closed in late 2014 with JPY20.3 billion ($192 million) in commitments mandated to invest six or seven companies.

Tokio Marine acquired Shokukai in 2015 for an undisclosed sum via its fourth mid-cap buyout fund, which closed at JPY23.3 billion in 2013. At the time, the company was posting annual revenue of JPY16 billion.

Established in 1991 and based in Tokyo, Shokukai claims to be one of the top companies in its field in Japan. Its client base encompasses more than 1,100 companies nationwide, including delicatessens and grocery stores. Operations focus primarily on wholesale of frozen food for lunchbox catering providers. Lunchboxes, known as bento, are a mainstay of Japan food culture and available in a variety of outlets including specialty shops and convenience stores.

“We will actively support Shokukai and pursue further growth and development of the company by combining Shokukai’s prominent business foundation with our management improvement methods, and by utilizing our parent company Marubeni’s business enhancement initiatives such as introduction of new sales channels and optimization of procurement and logistics,” iSigma said in a statement.

Marubeni established iSigma in 2000 as a venture fund manager before redirecting the GP into buyout activities in 2006. It was active in the food industry as recently as February, with a commitment from Business Advancement Fund II Investment to acquire Misuzu Life, a mushroom specialist targeting developing consumer trends in healthy eating.

Tokio Marine claims to have made more than 20 buyouts and raised more than $1.2 billion since 1991. Last year, it closed its fifth Japan mid-market fund at JPY51.7 billion, beating an initial target of JPY50 billion. The firm realized another exit earlier this year with the sale of its entire stake in Japanese machinery parts manufacturer Tonichi Kosan to domestic retailer Wakita & Co.

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• Topics
• North Asia
• Consumer
• Buyouts
• Exits
• Japan
• Tokio Marine Capital
• Secondaries