Orchestra Private Equity buys Japan scaffolding business
Orchestra Private Equity, which specialises in cross-border transactions involving Korea, Japan, and China, has acquired Japan-based scaffolding provider Stack for an undisclosed sum.
This is the firm’s third acquisition in Japan and its fifth overall. It was executed by OPE V – a reference to Orchestra’s deal-by-deal strategy, whereby a separate vehicle is established for each investment and capital is sourced from a pool of frequent collaborators, typically financial institutions.
Stack serves the construction industry, acting as a one-stop scaffolding solutions provider, from installation to removal. It also provides ancillary services such as temporary toilets and fences. The company primarily operates in the residential real estate space, especially renovation and maintenance. It works on more than 20,000 projects a year.
Orchestra will collaborate with the existing management team on organic and M&A growth strategies as well as on strengthening corporate functions like recruitment and analytics. The priorities for add-on acquisitions include expanding market share and customer numbers, workforce enhancement, cost synergies, and the development of capabilities in adjacent areas.
“We are particularly keen to work with Orchestra to realise a roll-up strategy which is to acquire and integrate similar scaffolding service companies [in Japan]. I look forward to further consolidating our fragmented market,” said Sugiyama Takashi, CEO of Stack, in a statement.
Orchestra was founded by Jay Kim, formerly of The Riverside Company and PineBridge Investment, and operates out of Singapore, although there are teams on the ground in Korea and Japan. Past Japan deals include Majesty Golf – which was exited in February – and Hong International, producer and distributor of Phoenix Darts machines.
Kiraboshi Bank provided acquisition financing for the Stack acquisition. Yamada Partners served as financial and tax advisor, P&E Directions provided consulting services, and Tokyo International Law Office acted as legal counsel.
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