Mizuho Capital Partners plans to buy a 60 percent stake in Medical Tribune, a Japanese publisher of weekly medical newspapers, for ¥5.3 billion ($58 million; €47.8 million) from Tokyo-listed Impress Holdings.
The firm, an affiliate of Japanese financial conglomerate Mizuho Financial Group, will invest ¥2.5 billion ($27.3 million; €22.5 million) in equity, with the rest of the financing provided by bank loans, Mitsuru Otawa, a managing director at Mizuho, told sister news site PEI Asia. He declined to name the banks involved in the deal, which he said would be finalised within the next few weeks.
The acquisition is being made from MCP III, Mizuho’s third buyout fund, which closed on ¥45 billion ($491 million; €406 million). MCP III has invested in three previous deals: the buyout of Japan View Hotel in December 2007; the almost 100 percent purchase of apparel manufacturer Waverock Holdings in March 2009; and the almost 100 percent purchase of Japan Light, a manufacturer of backlights for LCD panels.
MCP III is a generalist fund and currently has “a few” other deals in the pipeline, Otawa added.
Mizuho’s first buyout fund, FBF2000, closed on ¥15 billion ($164 million; €135 million) in 1999. The fund’s successor, MH Capital Partners II, closed on ¥35 billion in 2003. Both funds are fully invested. Mizuho will be launching its fourth buyout fund in a couple of years, Otawa said.
Medical Tribune, which has 110,000 subscribers, was acquired by Impress in 2005. The publisher recorded annual sales of ¥4.9 billion ($54 million; €44 million) and operating profits of ¥650 million ($7 million; €5.9 million) for the year ended March 2010, according to Brightrust PE Japan.