In that case, Carlyle will still own 10 per cent of total shares in Solasto, following the re-listing, and support the company’s further business growth with Carlyle Japan L.L.C’s managing director Takaomi Tomioka remaining on the board.
“Since our partnership with the management of Solasto, we have implemented a large number of growth initiatives in a timely manner. In December 2015, we established capital alliances with three new strategic partners – Daito Trust Construction Co Ltd, Toho Holdings Co Ltd and Infocom Corporation – to help Solasto increase its enterprise value. I believe that the strong trust between Carlyle and Solasto, as well as the unremitting efforts of the management and employees, have helped the company build the solid business foundation deserving to be listed on the first section of the Tokyo Stock Exchange, and set the stage for the next phase of growth,” Tomioka said.
During Carlyle’s investment period, Carlyle worked closely with Solasto to realize its mid-term growth by strengthening its medical administration outsourcing business and accelerating the expansion of its long-term care business.
For long term, Solasto implemented profitability management initiatives for each care facility and established a career center in 2014 to bolster its recruiting capability. It also acquired many companies including Cocoticare Inc.
As a result, sales rose from JPY5.6 billion in FY2012/3 to JPY11.6 billion in FY2016/3, and EBITDA turned from negative in FY2012/3 to JPY970 million in FY2016/3. The EBITDA margin of Solasto’s medical administration outsourcing business grew from 7.1 per cent in the FY2012/3 to 9.7 per cent in 2016/3.
“Carlyle has worked hard to enhance our corporate value and build a new foundation for growth by strengthening our organization and developing and implementing our growth strategy, as well as sharing their expertise in M&A execution,” Yasuhiko Ishikawa, CEO of Solasto, said. “With the re-listing of our company, we will have a fresh start and will work hard to carry out our corporate responsibilities as a public company to meet the expectations of our shareholders.”
Solasto, formerly known as N.I.C. Corporation, was taken private from the second section of the Tokyo Stock Exchange in 2012 through a management buyout transaction in a bid to build a strong business structure to cope with the rapid changes in the business environment.
Founded in 1965, Solasto is Japan’s first educational institution for medical administration with over 25,000 employees. It provides a wide range of services including medical administration outsourcing, long-term care services for the elderly and childcare services.