February 19, 2013

Japan's Orix Buys 90.1% of Robeco

Orix Corp. (8591) has agreed to buy approx. 90.1% of Netherlands asset manager Robeco from Rabobank for EUR1.935 billion (JPY 241 billion). This is the largest acquisition ever by Orix, Japan's biggest financial services and leasing company. Orix will allocate EUR 150 million treasury stocks to Rabobank as part of the acquisition price, and as a result Rabobank becomes a shareholder of Orix.

Rabobank will retain the remaining 9.99% stake in Robeco and will continue "to cooperate in maintaining and expanding Robeco’s business platform", according to the press release.

Robeco was founded in 1929. It had EUR189 billion in assets under management at the end of last year, a 26% increase from 2011.  The asset management firm has about 1,507 employees and has strong customer bases in Europe and the U.S. Traditional and alternative products of Robeco and its subsidiaries, SAM and TransTrend, have been invested by Japanese institutional investors and retail investors via major local securities firms.

Orix, which listed on the New York Stock Exchange in 1998 and which is more than 50% foreign-held, also operates in investment banking, life insurance, venture capital and in the financing of real-estate development.

February 07, 2013

CLSA Japan Sells Everlife To LG Household & Health Care

CLSA Sunrise Capital Partners I, a 2006 -vintage Japan-focused fund with USD 350 million commitment, sold 100% shares of  Everlife Co. Ltd. to LG Housefholld and Health Care for JPY 25.8 billion (USD 285 million).

According to IR documents of  LG Household and Health Care, the sale and purchase agreement was concluded on 17 December 2012 and the transaction was completed in late January. Everlife, 3rd largest direct marketing company in Japan's health care sector after Suntory and DHC, was valued at JPY 37 billion (USD 410 million), or 6 times estimated 2013 EBITDA.

CLSA Japan invested in Everlife in February 2008, but still managed to generate a generous return.

CLSA Japan also announced the first closing of its second fund with USD 150 million commitments form its existing foreign LPs.

February 05, 2013

CITIC Japan's Tri-Wall Eyes Russia And Turkey

Tri-Wall, a maker of heavy-duty cardboard and a portfolio company of CITIC Japan Capital Partners II,  has acquired DS Smith Plc's special cardboard business. Based in the UK, DS Smith sells its products to car parts makers across Europe. Tri-Wall, which has focused on Asian market to date, now aims to expand its business into Russia and Turkey. With the addition of 1.3 million sq. meters production capacity by the acquisition, Tri-Wall's capacity increases to 3.0 million sq. meters.