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Bain Capital to acquire 50% stake in Jupiter Shop Channel from Sumitomo Corporation

Bain Capital is to acquire a 50 per cent stake in Jupiter Shop Channel Co, Ltd, Japan’s leading TV shopping company, from Sumitomo Corporation.

The agreement signals a significant partnership between a large Japanese company and private equity to realise the full potential of a leading company. Financial terms of the transaction, were not disclosed.

Headquartered in Tokyo, Jupiter Shop Channel was established in 1996 as the first channel in Japan devoted to TV shopping, and today has the leading market share position and the highest sales in the industry. Shop Channel broadcasts live 24 hours a day, 365 days a year, offering a wide variety of items for sale including jewelry and fashion goods, beauty and cosmetic products, fitness products, home and interior products, home appliances and food. Shop Channel has attracted a large audience, currently about 27 million households across the nation, with about 50 per cent of all Japanese households wired to view it.

Shop Channel provides a unique selection of products from around the world and has a strong operations and logistics capability that supports every aspect of the business. This provides a platform for continued growth — from customer service and new product development and selection to real time adjustments to our programming.

“We look forward to working closely with Bain Capital on this partnership to build upon the Company’s sustained market leadership and pursue new opportunities in the market,” says Yoshio Osawa, Director, Senior Managing Executive Officer of Sumitomo Corporation’s Media, Network & Lifestyle Retail Business Unit. “We have been very impressed with Bain Capital’s understanding of the business and their ability to leverage a large global platform as well as a deep presence in Japan to help support the business.”

Bain Capital opened its Tokyo office in 2006, which is currently staffed with more than 30 people, and has been one of the most active private equity investors in Japan. Last year, it acquired Skylark, one of the largest restaurant operators in Japan, which also operates such widely recognised brands such as Gusto, Steak Gusto, and Jonathan’s. Bain Capital also purchased the master franchisee of Domino’s Pizza Inc. in Japan, and in late 2009, it acquired BELLSYSTEM24, the leading call center operator in Japan.

“We are pleased to enter this important partnership with Sumitomo Corporation and the company’s management team to accelerate the next phase of growth at Jupiter Shop Channel,” says David Gross-Loh (pictured), a Managing Director at Bain Capital. “We believe the multi-channel strategy leveraging TV platforms, the Internet, and mobile technologies offers significant future growth potential in combination with ongoing efforts to further increase customer satisfaction by enhancing Shop Channel’s programming and services.”

 

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