Bain launches tender offer for Japan marketing business

The private equity firm is looking to acquire all outstanding shares for JPY565 apiece, according to a filing. The price represents a 66.7% premium to the April 11 close. Tri-Stage closed up 23.7% at JPY 423 on April 13, a 12-month high.

The minimum acceptance threshold is 10.9m shares, or 43.7%. Akio Murata, founder and director of Tri-Stage, and Isai Senoo, the company’s chairman, together own 34.5%. They have agreed to tender their stakes. Sojitz Corporation, which owns 23%, will not sell its shares.

Founded in 2006, Tri-Stage claims responsibility for campaigns that account for 25% of Japan’s TV shopping market. It works with companies on product development, creative planning, and media selection for television, internet, and direct marketing. The company also provides services across order support, distribution and payment, customer management, and impact assessment.

Tri-Stage is pushing into cross-channel artificial intelligence (AI) marketing services, implementing digital tools such as QR codes and Google Analytics. At the same, the company noted that TV shopping is in decline due to falling viewer numbers and the competitive advantage of access to lower-cost broadcasting slots is dwindling.

Murata was introduced to Bain by SMBC Nikko Securities and resolved that the private equity firm could provide the expertise and resources required to drive growth in areas such as web-based and digital marketing. Bain’s previous Japan investments include Jupiter Shop Channel. It currently owns advertising agency Asatsu-DK.

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Tri-Stage posted JPY 47.8bn in sales – of which about half came from the television business – for the 12 months ended February 2021, down from JPY 50.4bn a year earlier. Over the same period, net profit increased from JPY 182m to JPY 848m.

Bain Capital closed its first dedicated Japan private equity fund on JPY110 billion last year. The firm also invests in the country through its pan-regional vehicles.

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• Topics
• North Asia
• Buyouts
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• Japan
• Bain Capital Asia
• buyout