Sushiro Will Bring $700 MM Profit To Unison II Fund

As is reported by several industry media, Unison Capital has announced that it will sell its entire stake (81%) in Sushiro, the top-selling revolving sushi restaurant chain in Japan, to an Irish investment company backed by Permira. Permira revealed that it was "valuing Sushiro at an enterprise value of approximately USD 1 billion".

Sushiro deal should be a home-run for Unison's second fund, which raised JPY 75 billion (USD 960 million) in 2004.

Unison acquired a 20% stake in the Sushi restaurant operator in 2007, increased its holdings to 90% by TOB in 2008 and took the company private in 2009. Unison paid approximately USD 285 million to acquire a 100% stake in Sushiro, of which US 170 million was financed by bank loans. After allocating 19% to the founder, we believe Unison spent approx. USD 100 million to finance the 81% stake (and associated cost). With USD 1 billion EV and no net outstanding debt, the deal will score approx. 8x ROI bringing USD 700 million profit to Unison II fund. Unison purchased Sushiro at 4x EBITDA, grew its EBITDA by as much as 3 times, and sold it at a very modest multiple.

This transaction shows foreign funds are increasing its presence in Japan. Large local funds, such as Unison, Advantage and Nomura Principal, used to own a lion's share in the large cap buyouts in Japan, but this in no longer the case. Bain, Carlyle and Permira have substantially benefited from the vacuum created in Japan's large cap space. Recent large transactions done by their Japan teams are secondaries bought from Japanese GPs without an exception.