Bain acquires Japan's Skylark for $2.1b in equity

The full acquisition price for Skylark, including debt, is said to be $3.4 billion. Upon announcing its acquisition, Bain only released the equity value of the transaction.

The buyout comes after more than six months of delays. Reports that Bain and was in late-stage negotiations with Nomura to purchase its 78.6% stake in Skylark surfaced in March. Those discussions were stalled after the tsunmani, leading bank lenders to temporarily withhold their financing, and were further delayed in August after an outbreak of dysentery led to the closure of 120 outlets.

Despite these hurdles, Bain executives remained keen on the asset. "Skylark is one of the country's pioneering family restaurant chains, and we are honored to partner with Tani-san, who has been responsible for repositioning the business," Yuji Sugimoto, managing director of Bain Capital in Tokyo, said in a statement. "We have been highly impressed with the company's strategy, portfolio of brands and growth trajectory."

Nomura Principal, a unit of Nomura Holdings, invested in Skylark in 2006 through a management buyout alongside CVC Capital Partners, for approximately JPY380 billion ($3.19 billion at historical rates). Nomura purchased a 77.76% stake in the company and CVC bought 20.96%. It was touted as one of the highest-priced investments by a private equity firm in Japan.

Skylark now adds to Bain's portfolio of food and beverage assets, which has included Burger King, Dunkin' Brands and Domino's Pizza. The private equity firm claims to work closely with management teams, helping drive customer traffic, increase customer satisfaction and expand the franchises' footprints.

Skylark launched in 1970 as a family-style restaurant, akin to American eateries such as Denny's. In March, Syklark had 3,399 restaurants under 48 different brands name under management, including Kozo Sushi Chain and Gusto. It claims approximately $4.5 billion in annual revenues.

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• Topics
• North Asia
• Consumer
• Buyouts
• Bain Capital Asia
• Japan
• Consumer
• buyout
• Nomura Principal Finance