Genki Sushi owner buying into rival
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hinmei, which owns Japanese restaurant chain Genki Sushi, will buy a one-third stake in bigger rival Sushiro Global Holdings from European private equity firm Permira.
Permira has agreed to sell its stake in Sushiro Global, which it bought from Japanese private equity firm Unison Capital in 2012, to Shinmei.
Permira, which paid about ¥80 billion (US$708.5 million) for Sushiro, boosted the value of the company by cutting costs on fish ingredients by using its global network.
The market for Japan’s conveyor-belt sushi market is expected to grow by about 25 per cent to ¥625 billion this year from ¥500 billion in 2012, according to research firm Fuji Keizai.
Questions & Answers
Q.Which companies are involved in this transaction, and what are their roles?
Which companies are involved in this transaction, and what are their roles?
Shinmei, owner of Genki Sushi, is buying a one-third stake in Sushiro Global Holdings. The stake is being sold by European private equity firm Permira, which previously owned Sushiro Global after buying it from Unison Capital.
Q.How much did Permira initially pay for Sushiro Global Holdings?
How much did Permira initially pay for Sushiro Global Holdings?
Permira paid approximately ¥80 billion for Sushiro Global Holdings. This amount was equivalent to about US$708.5 million at the time of their purchase.
Q.How has the Japanese conveyor-belt sushi market performed in recent years?
How has the Japanese conveyor-belt sushi market performed in recent years?
The market is projected to grow by about 25 per cent this year. Its value is expected to reach ¥625 billion, up from ¥500 billion recorded in 2012, according to Fuji Keizai research.
Q.What strategy did Permira use to increase the value of Sushiro Global?
What strategy did Permira use to increase the value of Sushiro Global?
Permira increased Sushiro Global's value by reducing costs associated with fish ingredients. This was achieved by using the firm's established global network for sourcing.
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