The Riverside Company has acquired Y. International, a Tokyo-based bicycle retailer with 29 company-owned stores across Japan, with a particular focus on metropolitan Tokyo.
Y. International is Japan’s high-end, sport enthusiast bike retail chain. The company sells bikes, frames, components, maintenance and fitting services, accessories, and apparel for high-end cycling enthusiasts including road bikers, tri-athletes, mountain bikers, and cyclo-cross racers. Y. International is based in Tokyo (www.ysroad.net/en).
“Y. International’s breadth of products, outstanding service, and wide range of over 20 top-tier brands differentiates them from competition,” said Riverside Vice President Hiroaki Wakashita. “Thanks to this outstanding blend of products and services, the company has strong growth prospects both within and outside metropolitan Tokyo.”
Riverside plans to build on Y. International’s strong position by increasing market share while widening its sales footprint outside Tokyo. The company can also capitalize on opportunities to increase customer loyalty and boost online sales thanks to its good reputation and large brick-and-mortar store network.
“Y. International is the first of several deals we are in the final stages of closing across the Asia-Pacific region,” said Riverside Managing Partner Stu Baxter. “Owners are looking for a partner who can help them expand both domestically and internationally, and we are focusing on opportunities where we can leverage our global footprint to assist them in those objectives. For us, it is all about growth, expansion and helping institutionalize small and medium sized enterprises.”
The Riverside deal team was comprised of Mr. Wakashita and Operating Partner Toki Mori. Providing support to the team was Partner Simon Feiglin, Partner Kiyo Nakano and Mr. Baxter.
The Riverside Company is focused on the smaller end of the middle market and invests in businesses valued at up to $250 million (€200 million in Europe). Since 1988, the firm has invested in more than 320 transactions with a total enterprise value of more than $6 billion. The firm’s current portfolio includes more than 70 companies. The Riverside Company is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
Tokyo Star Bank provided financing and Nihon M&A Center advised Riverside on the transaction.
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-15-13