J-Star secures 5x exit from healthcare firm HCM - update

J-Star - which held a 56.9% stake in HCM - acquired its interest in the company in May 2011 via a management buyout that was understood to be valued at about $30 million. The deal was J-Star's second healthcare-related investment from its JPY12 billion maiden fund; the other was Apo Plus Station, which was exited in late 2012, generating a 3x return.

HCM was set up in 2002 by Akitoshi Yamazaki and specializes in providing in-home care services. The business operates 75 caregiver dispatch centers across Japan's main island and runs one assisted living facility - Amica Villa - in Chiba, outside Tokyo.

During the holding period J-Star grew the number of caregiver dispatch centers from 62 at the time of investment. The GP also supported the firm's acquisition of Honest, a home care management business in the Osaka area.

"Healthcare in Japan continues to be a growing sector, and this company has demonstrated across many areas - in its nursing home business and home care business in particular - that this is promising market," J-Star CEO and founder Greg Hara told AVCJ. "The buyer realises this can be very good platform for them."

According to a release, revenues from the assisted living facility grew from JPY300 million (8% of the total sales) to JPY1.5 billion (27% of the total sales). The company forecasts this year's overall sales and EBITDA to be JPY5.5 billion and JPY504 million, respectively. By contrast, the annual sales and EBITDA at the time of investment were JPY2.7 billion and JPY295 million.

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

• Topics
• Exits
• North Asia
• Buyout
• Exit
• Japan
• healthcare
• buyout