PAG buys Japanese theme park for $722m

This is not the private equity firm’s first exposure to a Japanese theme park. In 2013, it backed Universal Studios Japan (USJ), joining existing investors Goldman Sachs, MBK Partners, and Owl Creek Asset Management. Following a revitalisation effort based on character-driven attractions rather than rollercoasters, Comcast NBCUniversal eventually bought USJ for JPY 438bn.

PAG plans a similar brand-building exercise for Huis Ten Bosch, having engaged Katana, a marketing and entertainment business specialising in theme parks to work on content and positioning. The private equity firm will also invest in new attractions and events to attract foreign and local visitors.

Huis Ten Bosch claims to be the largest theme park in Japan, covering an area the size of Monaco. It offers vistas dominated by cobbled streets and pretty canals – primarily inspired by the Netherlands – as well as flower and fireworks festivals, musical events and light shows, and interactive entertainment.

Key attractions include child-friendly Fantasy Forest, dinosaur adventure tour Jurassic Island, and interactive light show Fantasia City of Light. There are also five hotels and several restaurants. Prior to COVID-19, Huis Ten Bosch was receiving more than 2m visitors per year.

The seller is HIS Group, which operates travel agencies, hotels, and tourist transportation services, as well as theme parks, plus assorts assets in areas like energy and insurance. COVID-19 saw the company’s sales collapse from JPY 808.5bn in the 12 months ended October 2019 to JPY 430.3bn in 2020 and then JPY 118.5bn in 2021. Meanwhile, a net profit turned into losses of JPY 25m and JPY 50.1m.

Huis Ten Bosch also suffered. Visitor numbers fell from 2.5m in 2019 to 1.38m in 2020 and 1.27m in 2021. Foreign tourists, which numbered 162,000 in 2019, have been zero since mid-2020. It posted operating losses of JPY 1.99bn and JPY 2.8bn in 2020 and 2021.

“PAG has deep expertise across Asia Pacific in the consumer sector and we are well positioned to support HTB’s next phase of growth. We have great confidence in the park’s future potential, and we look forward to working closely with the entire HTB team to offer an unforgettable experience to visitors of all ages,” said Koichi Ito, co-head of Japan private equity at PAG, in a statement.

He added that the firm was keen to put more capital to work in Japan. PAG is currently raising its fourth pan-regional buyout fund, which has a target of USD 9bn. While there has been a historical bias towards China, last year a record USD 2.37bn was put to work, including USD 1.19bn outside of China. The Asia ex-China total was more than the previous four years combined.

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

• Topics
• North Asia
• Buyouts
• Consumer
• Real estate
• Japan
• buyout
• PAG
• Travel