Private equity (PE) firm MBK Partners will take Tsukui Holdings Corporation private through a tender offer as it capitalizes on Japan’s aged care and healthcare sector.
The firm is offering to buy out minority shareholders at 924 yen per share, a premium of more than 44% on the February 5 closing price. The tender offer, which values the company at about 66.9 billion yen ($633.3 million), will be valid until March 24.
Tsukui Holdings Corporation is 25.58% owned by Tsukui Kikaku Corporation and 74.42% by minority shareholders. After the tender offer is completed, MBK Partners will purchase shares held by Tsukui Kikaku to take the company private.
Founded as a civil engineering company in 1969, Tsukui Holdings entered the nursing home industry in 1983 with home bathing services for the elderly, and has since expanded its business to include day care services, home-visit nursing care and welfare equipment sales. The company had 700 facilities in Japan in March 2020.
Japan’s aged care industry is expected to grow rapidly in the coming decades as the country’s population ages. Japan is the oldest country in the world, with people aged 65 or older accounting for more than one quarter of the total population in 2020.
The Korea Trade-Investment Promotion Agency forecast in a recent report that the Japanese seniors healthcare market would be worth more than 100 trillion yen ($947 billion) by 2025, and its potential is attracting significant attention from PE firms.
MBK Partners has been very active in Japan, with recent notable deals including its acquisition of Accordia Golf in 2017. The PE firm bought the golf course operator through a tender offer at a valuation of 85.3 billion yen. (Reporting by Hee-yeon Han)