CVC Asia Pacific announces MBO and tender offer of Skylark Co. Ltd- Largest MBO ever in Japan and Asia announced today a tender offer to acquire the shares of Skylark Co. Ltd.
Skylark Co. Ltd. is the largest listed family restaurant operator in Japan, operating over 4,400 stores and generating revenues of over Yen 370 billion (US$3.3 billion). The company operates many of the leading restaurant brands in Japan, including Gusto (1,192 stores), Bamiyan (726 stores), Jonathan's (398 stores) and Yumean (379 stores). All of the company's brands have been organically grown.
The transaction, with an estimated enterprise value of over $ 3 billion, represents the largest management buyout in Japan and Asia ever. The founder and CEO, Mr. Kiwamu Yokokawa, opened the first Skylark restaurant in 1970. Since then the business has grown to become the largest family restaurant operator in Japan with over 4,400 restaurants. On an annual basis, over 500 million customers spend more than 330 million hours at Skylarks 4,400 restaurants. Mr. Yokokawa, is leading a management buyout for the business as this will allow the company to undertake an improvement strategy over the mid to long term.
The tender offer was made by SNC Investment Co. Ltd., a company which will be funded with equity from Nomura Principal Finance and Asia Eateries Holdings NV, a Belgian company formed by CVC funds. Mizuho Bank has committed to provide acquisition financing for the transaction. UBS Securities Japan advised AEH on the transaction.
The offer has been endorsed by the board of directors of Skylark, as well as several of its major shareholders.