Advantage Partners sells Komeda coffee shop chain to MBK

The purchase price was not disclosed, but Reuters reported that Advantage was seeking more than JPY40 billion ($448 million) for the company, valuing it in excess of 10x EBITDA. The Japanese private equity firm acquired a 78% interest in Komeda from its founders in 2008, paying JPY15 billion (then $146 million). The company operates nearly 500 coffee shops nationwide.

Advantage's recent investment activity includes the acquisition of Sanyo Electric's digital camera unit from Panasonic and the purchase of an additional 16.67% stake in LED lighting products company CCS. It has also exited restaurant operator Rex Holdings to Colowide for approximately JPY13.7 billion and - along with Bain Capital - sold electronic billing equipment manufacturer MEI Conlux Holdings to Crane for about $820 million.

The private equity firm is also in the process of raising a JPY20 billion bridge fund, primarily from existing LPs. This follows Advantage Partners IV, which closed in 2007 at JPY215.6 billion.

MBK is also on the fundraising trail, having reached a first close of $1.25 billion on its third North Asia-focused vehicle in November. The full target is $2.25 billion.

Michael Kim, MBK's founding partner, told AVCJ last year that Japan retains considerable investment potential, despite having been overlooked in recent years. He noted the country's reliable legal system, strong private equity infrastructure, including leveraged finance, and the presence of a lot of companies with solid fundamentals.

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• Topics
• Secondaries
• Buyouts
• Consumer
• North Asia
• Advantage Partners
• Secondaries
• MBK Partners
• Consumer
• Japan