22 April 2014
Baring Asia Sells Net Japan to Orix
Baring Private Equity Asia (“Baring Asia”) announced today that Net Japan Holdings Limited, a Hong Kong company owned by a fund advised by Baring Asia, has sold its holding in Net Japan Co., Ltd. and shares in its group companies (“Net Japan”) to Orix Corporation, the Japanese financial services group.
Established in 1995 by Mr. Toshiyuki Yoshizawa, Net Japan is a major precious metal, jewelry and diamond recycler. The company purchases and sells via intermediaries gold, silver, platinum, palladium, diamonds, and fine jewelry owned by individuals and sells these to refining companies, trading companies and others. Net Japan is headquartered in Ueno, Tokyo and trades nationwide through its network of 11 branches in Japan including Tokyo, Sapporo, Sendai, Kofu, Nagoya, Kanazawa, Osaka, Hiroshima, Fukuoka, Yokohama, and Matsuyama. Additionally, through auctions that it manages in Hong Kong, Net Japan has established overseas sales routes into China, India and other markets. It is the leading company in Japan in its field with a dominant market share.
Tadashi Maruoka, Managing Director of Baring Asia in Tokyo, said, “Net Japan is a perfect example of Baring Asia’s ability to work with entrepreneurs and management teams to assist them in growing the business, particularly outside of the domestic market. Net Japan was already an excellent business but we were able to add the financial and operational skills and other capabilities to make the business an attractive acquisition target for a suitable buyer. Net Japan will now become part of the Orix Group, a leading Japanese financial group”
Net Japan Holdings Limited first acquired its stake in Net Japan Inc. in April 2012, and embarked upon a three-pronged strategy to substantially grow the business, significantly increase profits and provide exit options for its founder. The strategy involved:
- preparing the business for growth: Implemented a management control infrastructure to institutionalize the business, including new compliance, financial reporting, and KPI systems
- achieving growth through acquisition: Net Japan Inc. acquired its number two rival, Olympic Gold, creating an enlarged group with 60% market share, and reinforcing the management team;
- driving international expansion: Net Japan Inc. acquires and aggregates jewelry, diamonds and precious metals in Japan but Net Japan Holdings Limited and its affiliates have now also built distribution businesses across Hong Kong, Bangkok, and Singapore.
Notes to Editors
Baring Private Equity Asia is one of the largest and most established independent private equity firms in Asia and advise funds with total committed capital of over US$5 billion. The firm advises on a pan-‐Asian investment program, specializing in companies requiring capital for expansion, recapitalization or acquisitions. Baring Asia has been investing in Asia since its formation in 1997 and has over 100 employees located in offices in Hong Kong, Shanghai, Beijing, Mumbai, Singapore, Jakarta and Tokyo. The firm currently advises funds that have invested in over 30 portfolio companies across Asia with 95,000 employees and revenues of over $25 billion in 2013.
Richard Barton, Newgate Communications