Japan's J-Star confirms two exits

Financial details were not disclosed. J-Star acquired NHS in 2015 via its second fund, which invested companies with valuations in a range of JPY1-10 billion ($9.7-97 million). Yokoi was acquired in 2018 by the private equity firm’s third fund, which targeted companies worth JPY3-10 billion.

The NHS investment was said to be an attempt to leverage trends around Japan’s aging population and changing regulatory environment for insurance. J-Star is selling NHS to Ashai Life after supporting three bolt-on acquisitions. Asahi Life said in a statement that, in light of COVID-19, it was attracted to the company’s diversified customer engagement capabilities. NHS has a significant insurance telemarketing business.

Yokoi was targeted as a dominant player in a stable niche. At the time of J-Star’s investment, it was said to be the leading supplier of fire hydrants in Japan, with annual sales of $60 million and only two serious competitors. The GP helped professionalize management and internationalize the company’s supply chain before exiting it to Hatsuta Seisakusho, a diversified machinery maker with significant exposure to fire extinguishers, especially for marine use.

Previous exit activity includes the sale of TV shopping business Itty to local broadcaster TV Asahi Corporation last year and the sale of automotive seat cover supplier Tokai Trim to hotel chain operator Rembrandt Holdings in 2019.

J-Star invests in various light industrial and consumer sectors, with an increasing focus on service-oriented categories. The lower-middle market GP closed its fourth fund in 2019 at the hard cap of JPY48.5 billion, a 50% increase versus the previous vintage. 

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• Topics
• North Asia
• Support services
• Financials
• Trade sale
• Japan
• J-Star
• insurance
• manufacturing