Riverside exits Japan bicycle business to Daiwa
The Riverside Company has sold Japan-based bicycle retailer Y International to domestic private equity firm Daiwa PI Partners for an undisclosed sum.
Founded in 1898, Y International is a specialty sports bicycle chain with 32 big-box outlets nationwide. It sells bikes, frames, components, maintenance and fitting services, accessories, and apparel for the likes of road bikers, triathletes, mountain bikers, and cyclocross racers.
Daiwa PI said in a statement that COVID-19 has boosted demand for bicycles as a means of transportation with minimal interpersonal contact. It also expects Y International to benefit from government measures promoting the use of bicycles in the interests of health, tourism, and environmental protection.
When Riverside acquired the business from its family owners in 2013, there were 29 stores with a heavy concentration on metropolitan Tokyo. It claims to have delivered on plans to widen the sales footprint, build an e-commerce platform, and professionalize management through the introduction of data-driven analytics and reporting, a full back office, and a new management information system.
“We focused our efforts heavily on growth and are happy to say we expanded the geographies for store locations to several new key markets such as Kobe, Kyoto, Hiroshima, Fukuoka and Ehime,” said Hiroaki Wakashita, a vice president at Riverside, in a separate statement.
The original investment was led by Hiro Wakahita, now a partner at Orchestra Private Equity. He worked with Kaj Vestman, a Sweden-based sports bikes and sporting equipment expert on executing the transformation.
Riverside makes buyout investments towards the smaller end of the middle market, typically family-owned businesses or small corporate carve-outs. The firm’s first two Asia-focused funds were pan-regional, but the third is dedicated to Australia and New Zealand. Riverside Australia Fund III reached a second close of A$261 million ($190 million) – against a target of A$350 million – in mid-2020.
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