NSSK buys Japanese sports nutrition business

Dome was established in 1996 and entered the nutrition space four years later with DNS, a protein powder. It is reportedly Japan’s second-largest provider in the space after Meiji Holdings-owned Savas. DNS is now the umbrella brand for a range of supplements, drinks, and snacks. Some of these – including high-protein noodles – were developed in collaboration with Taisho Pharmaceutical and specialist fruit-based products retailer Takano.

“DNS products are manufactured at plants that have passed rigorous anti-doping screenings and are continuously tested for banned substances to uphold the company’s utmost commitment to safety and quality. These factors make DNS one of Japan’s leading brands in sports nutrition and have garnered strong support from its consumers, with high brand recognition and a stable customer base,” NSSK said in a statement.

The private equity firm plans to bring DNS into its value creation program and implement global best practices in accounting, finance, and compliance. It will also support sales growth by expanding the customer base, broadening the product range, and refining the marketing strategy.

Shuichi Yasuda, Dome’s founder and CEO, was on the American football team at Hosei University. Participating in a training camp at the University of Hawaii, he recognized the gap between the Japanese and US sports systems. Yasuda subsequently started importing sports medical products and built his business from there. According to the DNS website, his interest in sports nutrition came after a stint working with the now-defunct NFL Europe operation.

NSSK – which was established by Jun Tsusaka, formerly head of Japan at TPG – is currently deploying its second fund, which closed at JPY60 billion ($531 million) in 2017. Investments range from JPY1-5 billion and focus on the healthcare, consumer and leisure segments.

Earlier this year, the firm secured its first full exit from Fund II with the sale of nursing care provider Vati to an investor group led by Neuberger Berman. NSSK generated an IRR of 40% and a multiple of 3x. It also re-invested in the business in expectation of further upside.

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• Topics
• North Asia
• Buyouts
• Consumer
• Japan
• NSSK