In Japan’s largest private equity (PE) transaction this year, Bain Capital announced on June 22 that it will buy a 50 percent stake in Jupiter Shop Channel (Jupiter) from Sumitomo Corporation for about 100 billion yen ($1.3 billion).
The target is Japan’s first television channel devoted to shopping, offering a variety of items for sale through an around-the-clock broadcast. Jupiter has the highest market share of television shopping channels in Japan, with an audience of 27 million households across the country.
Boston-based PE firm Bain Capital has succeeded in buying a business from a Japanese firm at a time PE players are having a hard time securing new deals in Japan, said Reuters. It is viewed as one of the most active foreign investment firms based in Tokyo. Last year it bought restaurant chain Skylark from an investment arm of Nomura Holdings. Bain also owns the Domino's Pizza franchise in Japan.
Sumitomo said in a separate statement that it aims to expand its television shopping business in China and other Asian emerging markets by tying up with Bain Capital.
An Asia-based Ropes & Gray team is advising Bain Capital in its Jupiter investment, led by Tokyo partner Tsuyoshi Imai and Hong Kong partner Michael Nicklin. Mori Hamada & Matsumoto acted for Bain as its Japanese counsel.
Commenting on the transaction, Imai said: “We are very pleased to take part in another exciting transaction representing Bain Capital in Japan. This deal demonstrates both the commitment of financial investors to Japan, as well as the opportunities for private equity firms to work with Japanese strategic companies.” ALB
Candice Mak is North Asia Editor at ALB. Follow her on Twitter: @ALB_Magazine.
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