Bain Capital sells Domino's Japan for JPY 12 billion
Bain Capital Partners announced that it would be selling the majority stake it in Domino's Pizza Japan for JPY 12 billion or USD 124 million. David Gross-Loh, Managing Director of the US-based private equity firm, told Reuters that they would still own a 25% stake in the Japan-based franchise. Despite the sale, he said that Domino's Pizza Japan still has the capacity to grow.
Reuters reported that private equity had found its niche in the mostly founder-owned restaurant businesses in Japan. Gross-Loh said that whereas industrial and technology companies take long to decide about selling their divisions, the need for successors in founder-owned firms provides private equity firms room to seize opportunities. "The retail and restaurant sector is rife with founder-owned businesses that can be acquired and taken to a next level," he added. Just last year, Unison Capital, a Japanese buyout firm, completed one of the largest transactions in the country when it sold a sushi restaurant chain for USD 1 billion to Permira, a private equity company based in Europe.