NSSK exits Japan nursing care provider to Ricoh Leasing
Japan-based mid-market private equity firm NSSK has exited nursing care provider Welfare Suzuran to Ricoh Leasing, a Tokyo-listed leasing and finance company, for an undisclosed sum.
NSSK acquired Welfare Suzuran in 2019 through its second fund, which closed on JPY 60bn (USD 456m) in 2017. Not long after that deal closed, the private equity firm secured its first full exit from Fund II, also in the nursing space. It sold Vati to a group led by Neuberger Berman, generating a 40% IRR and a 3x multiple, and re-invested in the business through the same fund.
Welfare Suzuran was established in 2011 in Nagoya. It operates eight residential-type nursing homes, three group homes for people with disabilities, and a group home for residents suffering from dementia. The company claims to have achieved high margins and occupancy rates by leveraging its strengths in providing quality services at affordable prices.
NSSK said in a statement that it had helped strengthen the company’s management by implementing global best practices in areas like accounting, finance, compliance and governance, environment, social, and governance (ESG), and sales strategies and growth strategies. Notably, better budget control led to an improvement in profitability.
Ricoh Leasing, which has a market capitalisation of around JPY 119bn and generated revenue of JPY 303.9bn in the 12 months ended March 2022, has sought to expand its business beyond financial services in the past two decades. Healthcare is a key focus area, where the company has built on existing relationships with medical equipment manufacturers and suppliers, hospitals, and clinics.
In 2011, Ricoh Leasing started a fee factoring service for nursing compensation for care providers and annual transaction volume in this area now exceeds JPY 70bn.
Welfare Suzuran represents its first foray into nursing care. NSSK said it believes that Welfare Suzuran can achieve further growth and improve corporate value by realising synergies with Ricoh Leasing’s medical and nursing care business, and by utilising the company’s robust financial standing.
More on North Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.