Japan's J-Star exits HR business to Longreach

J-Star, which typically deploys in a range of JPY 1bn-JPY 3bn (USD 9.2m-USD 28m) acquired 100% of Aki-Japan in February 2021. It exited a 20% stake to an unspecified buyer the following April, retaining an 80% position.

J-CEP is recognised locally as a leading temporary staffing agency for the construction industry. In addition to Aki-Japan, its core group companies include engineer recruiting specialist JAG Field.

J-Star acquired JAG in February last year as part of a segment consolidation play. The firm has framed its interest in this space as part of an attempt to solve chronic workforce shortage problems in Japan.

J-CEP’s main operations involve sourcing construction field managers for projects. The company has aimed to differentiate itself through sophisticated hiring, training, and support programmes. As a result, it has outperformed market growth rates over the past decade, according to Longreach.

Longreach also cited the company’s upside in terms of alleviating workforce shortage pressures and noted that it would likewise pursue growth through a bolt-on strategy.

“The acquisition of J-CEP continues Longreach’s long established and core investment strategy of investing in the business services sector, and particularly in high-quality businesses with growth drivers through providing solutions for the structural labour shortage issues in Japan,” Longreach said in a statement.

Longreach is looking to raise USD 800m for its fourth fund, which will continue the firm’s existing strategy of mid-market control deals in North Asia with an emphasis on Japan. Fund III closed on USD 650m in 2019. Fund IV was active as recently as last month with the acquisition of Japanese wellness player Nobitel. 

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• Topics
• North Asia
• Buyouts
• Trade sale
• Support services
• Japan
• J-Star
• The Longreach Group Limited
• professional services