Secondary Buyout • Consumer Services

Polaris Capital Group Acquires Hitowa

On February 5, 2019, private equity firm Polaris Capital Group acquired consumer services company Hitowa from CVC Capital Partners

Acquisition Context
  • This is Polaris Capital Group’s 4th transaction in the Consumer Services sector.
  • This is Polaris Capital Group’s 27th transaction in Japan.
Investment Fate
  • Hitowa was sold to a consortium of financial buyers in 2023 for 90.0B JPY.

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M&A Deal Summary

Date February 5, 2019
Target Hitowa
Sector Consumer Services
Buyer(s) Polaris Capital Group
Sellers(s) CVC Capital Partners
Deal Type Secondary Buyout

Target Company

Hitowa

Tokyo, Japan
Hitowa is a corporate group with a nursing care business that operates nursing care homes for the elderly under the Irise brand, a franchise business that mainly provides house cleaning services under the Osoji Honpo brand, and a childcare business that operates licensed nurseries under the Taiyono-ko brand. Hitowa was founded in 1997 and is based in Tokyo, Japan.
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Buyer Overview 1

DESCRIPTION

Polaris Capital Group is a private equity firm focused on mid-sized opportunities throughout Japan. Polaris generally seeks manufacturing companies with competitive technologies/processes, but the Firm will also consider consumer goods, retail, logistics and other service based businesses possessing strong brands or unique business models with potential to expand. Prospective transaction situations of interest include business successions and corporate carve-outs. Polaris Capital Group was formed in 2004 and is headquartered in Tokyo.


Deal Context for Buyer #
Overall 27 of 38
Sector: Consumer Services 4 of 7
Type: Secondary Buyout 5 of 5
Country: Japan 27 of 38
Year: 2019 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-11-28 O-net

Tokyo, Japan

O-net is a provider of matchmaking services. O-net was founded in 1980 and is based in Tokyo, Japan.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-02-18 Hivic

Saitama, Japan

Hivic is a manufacturer and seller of precut timber, sales of timber, building materials, housing equipment and others, sales of building components, and construction and sales of custom-build wooden houses. Hivic was founded in 1966 and is based in Saitama, Japan.

Sell -

Seller Profile 1

SELLER

CVC Capital Partners

Luxembourg, Luxembourg

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1981
PE ASSETS 177.0B EUR
Size Mega
Type Sector Agnostic
DESCRIPTION

CVC Capital Partners is a global private equity firm focused on investments in large companies located in Europe, North America, and Asia. CVC looks for opportunities with stable cash flows and talented management, and will consider businesses in a variety of industries. Target sectors include textiles, industrial products, waste management, building materials, energy/utilities, business services, financial services, distribution, healthcare, media, semiconductors, and gaming. CVC can handle transactions valued from €200 million to €10 billion. CVC Capital Partners was formed in 1981 and is based in Luxembourg.


Deal Context for Seller #
Overall 145 of 182
Sector: Consumer Services 5 of 6
Type: Secondary Buyout 33 of 44
Country: Japan 7 of 7
Year: 2019 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-01-08 ParexGroup SA

Issy-les-Moulineaux Cedex, France

ParexGroup SA is a provider of specialty dry-mix solutions for the construction industry. The company offers a broad range of products under recognized brands through three core business lines: façade decoration and protection, ceramic tiles setting materials and waterproofing systems. Parex products range is exposed to various end-markets within the construction industry, notably renovation and residential new build.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-01 Messer Industries

Bad Soden am Taunus, Germany

Messer Industries is a manufacturer and supplier of oxygen, nitrogen, argon, carbon dioxide, hydrogen, helium, inert welding gases, special gases, gases for medicinal use and a wide variety of gas mixtures. Messer Industries is based in Bad Soden am Taunus, Germany.

Buy -