Sunrise Capital, a Japan-focused private equity fund led by CLSA Capital Partners, on Wednesday announced that its portfolio firm KK AB & Company (AB & Company), one of the country’s largest beauty salon chains, has agreed to fully acquire Agir Co., Ltd.
Financial details of the deal were, however, not disclosed.
The announcement comes little over a month after the company acquired another local beauty salon chain Puzzle.
Agir, which was awarded a franchise by AB & Company in 2014, has expanded to 40 salons as of September 30, 2018, mainly in the Tokai region, the central part of mainland Japan.
Following the transaction, Agir CEO and president Kazutaka Higuchi will continue to lead the Agir team. He will also join the management team of AB & Company and assist the Agu Group to continue achieving further growth along with the founder, Kazuhiro Ichinose, CLSA Capital said in a statement.
The transaction is expected to be completed by the end of October 2018. Agir will become a subsidiary of AB & Company after the deal.
AB & Company, which operates under the brand name Agu, manages a chain of 310 beauty salons nationwide. In addition to the directly managed salons, approximately 20 franchise owners (as of September 30, 2018) operate salons under the Agu brand name.
Going forward, the group intends to accelerate the rate of new store openings and expand the number of salons to 1,000.
CLSA Capital Partners, through Sunrise Capital III, announced an investment of JPY10 billion in KK Loiness and B-first KK (Agu Group) in March this year. Following the transaction, Sunrise III also acquired a majority stake in the Agu Group through a special purpose vehicle. In February, the fund had agreed to acquire Marubeni Mates Ltd, a full-suite service provider of uniforms in Japan, for an undisclosed amount.
Sunrise Capital has raised approximately $1 billion and completed investments in 16 companies since its establishment in 2006. It had closed the third fund at a hard cap of $400 million in May last year.
CLSA Capital Partners, the asset management arm of Hong Kong-based CLSA, has more than $4 billion under management and offices across the region, including Hong Kong, Singapore and Tokyo.