Advantage completes exit from Japan's FMI

The private equity firm acquired a majority stake in FMI in 2014. Takeo Kimoto, the company’s founder, re-invested in the new entity as Advantage looked to accelerate growth through the professionalization of management and marketing functions.

Toho subsequently came in and bought a 73.2% interest, with Advantage retaining 21.8% and Kimoto 5%. Toho said it decided to take full ownership with a view to strengthening group management structure, according to a filing. The size of the transaction was not disclosed.

Established in 1947, Toho operates throughout the food supply chain from production to purchasing, procurement and sales. In addition to its wholesale operation – which encompasses 184 outlets – the company owns 36 supermarkets, provides quality control services and operational support systems to food service specialists, and has interests in construction. FMI was intended to complement the existing food industry offering.

Sales reached JPY231.3 billion in the 12 months ended January 2020, while net profit came to JPY474 million. FMI’s revenue and net profit contributions were JPY3.7 billion and JPY29 million, respectively. In 2018, the year Advantage sold control, they were JPY6.7 billion and JPY184 million.

Advantage invested in FMI through its JPY20 billion bridge fund, which closed in August 2013 and was intended to help the firm reestablish its franchise following problems with Fund IV. Earlier this year, the GP closed its sixth Japan buyout fund with JPY85 billion in commitments.

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

• Topics
• North Asia
• Trade sale
• Consumer
• Japan
• Advantage Partners