Longreach buys Japanese assisted stretching business

The private equity firm is deploying its fourth North Asia fund, which is currently in the market with a target of USD 800m. Several small closes have already been completed with existing investors. Longreach typically pursues deals in the range of USD 50m to USD 250m.

The Nobitel transaction includes shares held by Masahiro Kurokawa, the company’s founder and CEO, who will retain a minority interest and stay on in his leadership role. Several minority investors are also selling, while Longreach is contributing new capital in the form of convertible preferred shares.

Operating under the Dr.stretch brand, Nobitel claims to be the dominant player in Japan’s assisted stretching market and the third-largest stretch studio chain globally. It has more than 200 locations in Japan and in markets such as Singapore, Taiwan, Malaysia, and the United Arab Emirates (UAE).

“Longreach considers this to be an exceptional opportunity to acquire a market-leading business and Japanese consumer brand, with strong growth in its segment within the fast-growing wellness and healthcare sector, both in Japan and across Asian markets,” the private equity firm said in a statement.

“The company’s services and product lines contribute to solving healthcare challenges and to individual and societal health outcomes in Japan and other markets.”

Longreach will support further expansion, leveraging its experience with multi-store consumer businesses like Primo Japan, Wendy's First Kitchen, Kohikan, Caffe Veloce, and Café de Crie. Other operational initiatives are likely to focus on digitalisation, platform development, marketing innovation and cost efficiencies.

The private equity firm recently sold Hong Kong-headquartered medical devices manufacturer Quasar Medical to Boyu Capital for USD 660m, securing a 7x return.

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• Topics
• North Asia
• Buyouts
• Healthcare
• The Longreach Group Limited
• Japan