CLSA Capital Partners, the asset management business of CLSA, has reached an agreement to acquire Japanese wedding service providers Dears Brain and Planet Work, according to the company’s announcement.
The acquisition will be made through a special purpose vehicle Dears Brain Holding (Dears Brain HD), supported by SENSHUKAI Co., Ltd, the parent company of the two targets.
CLSA Capital Partners conducted the investment through Sunrise Capital IV, the fund that targets investments in established, mid-cap companies with strong growth potential in Japan.
SENSHUKAI will subsequently acquire a 5% stake in Dears Brain HD and will continue its business alliance with the two companies.
Following the transaction, Dears Brain and Planet Work’s President and CEO Hirokazu Kogishi will continue his role. There will be no material changes to both Dears Brain and Planet Work’s management and business operations.
The two wedding services providers manage 25 wedding venues nationwide as of March 2021 and have held wedding ceremonies and banquets for over 5,100 couples in 2020.
After the acquisition, Sunrise IV together with the companies’ management intends to pursue and execute growth strategies for the Dears Brain HD Group as the leader in industry-wide consolidation. Some of these initiatives include IT function enhancement, optimisation of administrative and corporate planning as well as Asia expansion. Dears Brain HD also plans to further collaborate with SENSHUKAI’s core mail order business.
“The bridal industry as a whole suffered tremendously from last year as a result of the COVID-19 pandemic,” said Megumi Kiyozuka, President and Representative Director of CLSA Capital Partners (Japan).
Established in May 2004, Dears Brain manages “guest house” type weddings and has opened new locations mainly in various mid-sized regional cities. Dears Brain joined the SENSHUKAI Group in May 2008 and currently operates 23 wedding venues and three restaurants across Japan.
Meanwhile, Planet Work currently operates two wedding venues and an Italian restaurant named “CANOVIANO ANNEX” in Osaka prefecture. Planet Work joined the SENSHUKAI Group in April 2015.
Sunrise Capital, with approximately $1.5 billion under management, has completed investments in approximately 30 companies, both standalone and follow-on investments.