MARUKI SANGYO Co., Ltd.

Investment timing: 2016/11
Exit timing: 2019/10
Deal type: Business Succession
Fund: AG II
Status: Exit

Investment Background

Maruki Sangyo is one of the top-class recycling companies in Japan that operates an efficient and unique business in a rural area, selling virgin resin materials/buying back used resin (waste plastic)/re-selling recycled processed resin raw materials. In response to the owner’s business succession needs, Aspirant Group invested in the company with the themes of management team building and improving profitability.

Post-Investment Activities

Development of Infrastructure

• Development of an accounting management system
• Design/management of meeting structure
• Development of Corporate Infrastructure (Improvement of working environment/conditions, external recruitment in key positions (sales/manufacturing engineering/HR)/ strengthening of organization)

Rationalization

• Reallocation of Management Resources (Focus on profitable products/customers)
• Improvement in Productivity – Cost reductions (Improvement of manufacturing efficiency through maintenance/reactivation of idle machines)

Support for Growth

• Sales Support/Sales Channel Expansion, etc. (New product development/introduction to overseas markets)
• Sales Support/Sales Channel Expansion, etc. (Strengthening of domestic/overseas sales by establishing an office in Tokyo)
• R&D/Capital Investment (Expansion of manufacturing capacity by launching a new plant)
• Add-On Acquisition (M&A of other companies in the same industry with synergies)

Exit

In 2019, Maruki Sangyo was acquired by CITIC Group’s investment fund for Japanese companies, which has an extensive network/resources in China and other East Asian countries, with a potential to help Maruki Sangyo’s business growth.