February 13, 2015, Tokyo - Bain Capital Private Equity today announced that it has successfully acquired hot springs and hotel operator, Ooedo Onsen Holdings, from its founder Hashimoto Hiroshi. Following the close of the transaction, Bain Capital will own 100% of the business. The financials of the deal were not disclosed.
Ooedo Onsen Holdings operates the Ooedo Onsen Monogatari chain of hot springs and hotels, which originated out of Tokyo’s large-scale onsen “Odaiba Ooedo Onsen Monogatari”. Ooedo Onsen Monogatari currently operates 23 onsen inns and 6 onsen theme parks across Japan, attracting around 50 million customers in a year. Turnover of the business has been growing at 30% YoY since 2007, and is expected to reach Y35 billion at the end of the current financial year. The business has around 3,000 employees and has quickly expanded to become one of the leading hot spring chain-operators in Japan.
Yuji Sugimoto, a Managing Director at Bain Capital Private Equity in Japan, commented, “Ooedo Onsen Monogatari has established an innovative model in the hot springs hospitality market that provides customers with a quality hotel service at a standard price across its network. This strategy puts the operator in a privileged position and creates greater potential for growth.”
Bain Capital Private Equity will seek to leverage its international experience in consumer services and retail chain operations through its investments in Japan, the rest of Asia, Europe and the U.S. By utilizing its experience and track record from operating companies such as Skylark, Bain Capital will help optimize existing teams to fulfil the inbound tourism demand in Japan. We will focus on strengthening customer marketing, and in due course, aim to speed up the opening of new Ooedo Onsen hotels in Asia and overseas.”
Bain Capital Private Equity first established a presence in Japan in 2006 upon opening an office in Tokyo and now employs more than 30 professionals. With deep-rooted experience in investing and building businesses around the world, the firm has advised on private equity, growth, and venture capital investments in companies across a variety of industries. In Japan, Bain Capital Private Equity has invested in eight companies including Skylark, Jupiter Shop Channel, Domino’s Pizza Japan and Bellsystem24.
Ooedo Onsen Holdings (http://www.ooedoonsen.jp/index.html) operates the Ooedo Onsen Monogatari chain of hot springs and hotels, which originated out of Tokyo’s large-scale onsen “Odaiba Ooedo Onsen Monogatari”. Ooedo Onsen Monogatari currently operates 23 onsen inns and 6 onsen theme parks across Japan, attracting around 50 million customers in a year.
Bain Capital Private Equity has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since our founding in 1984. Our team of more than 400 investment professionals creates value for our portfolio companies through our global platform and depth of expertise in key vertical industries including consumer/retail, financial and business services, healthcare, industrials, and technology, media and telecommunications. In addition to private equity, Bain Capital invests across asset classes including credit, public equity and venture capital, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.
This press release has been updated to reflect the new business unit name, "Bain Capital Private Equity," which was changed from "Bain Capital" or "Bain Capital, LP."