J-Star to exit healthcare firm HCM to Alshok Group
Japanese security firm Alshok Group has agreed to acquire Tokyo-based healthcare service provider HCM Corporation, paving an exit for mid-market GP J-Star.
The value of the deal was not disclosed.
J-Star - which currently holds 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 ($120 million) 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. According to its website, the business operates 60 caregiver dispatch centers across Japan's main island and runs one assisted living facility - Amica Villa - in Chiba, outside Tokyo.
As per Alshok's disclosure, HCM has JPY99 million in capital and reported net sales of JPY3.95 billion for the year ended June 2014, versus JPY3.86 for the previous year. Meanwhile, net income for the same period came to JPY114 million compared to JPY207 the previous year,
It is J-Star's second deal in a matter of weeks, following the sale of property repairs business Burn Holdings to Shinsei Corporate Investment and Creation Capital. The deal is said to have generated a gross return multiple of 8x. J-Star acquired a majority stake in the company for around $5 million in 2011.
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