SAGAMI GROUP HOLDINGS Co., Ltd.

Investment timing: 2016/10
Exit timing: 2018/6
Deal type: Carve-Out
Fund: AG II
Status: Exit

Investment Background

Sagami Group is the largest listed kimono specialty store in Japan (at the time), with a strong customer base due to its strong brand and a nationwide retail chain. In response to the business carve-out needs of its parent company, UNY, Aspirant Group invested in the company through TOB in order to leverage its brand, to assist the company to become a standalone company, and stabilize its earnings and its financial position as the company was implementing structural reforms.

Post-Investment Activities

Development of Infrastructure

• Development of an accounting management system
• Design/management of meeting structure
• Development of Corporate Infrastructure (Consolidated group management structure through organizational restructuring (Implementation of a holding company structure))

Rationalization

• Improvement in Productivity – Reduction of order loss (Centralization of product management)
• Improvement in Productivity – Cost reductions (Integration of administration, product planning, procurement, and logistics functions under the holding company)
• Pricing Strategy (Setting appropriate discounts based on quantitative analysis)
• Improvement in Cash Management​ (Improvement of cash position through securing working capital more efficiently)

Support for Growth

• Sales Support/Sales Channel Expansion, etc. (Monetization of surplus assets)

Exit

In 2018, as the company met the needs of Belluna, a major player in the catalog mail-order industry, to strengthen its kimono business, it became a wholly owned subsidiary of Belluna, through privatization via TOB.