HONG KONG, March 22 /PRNewswire-Asia/ -- EQT Greater China II
("EQT") has acquired a co-control stake in leading discount
house-ware retail chain, Japan Home Centre ("JHC"), based in Hong
Kong. EQT has a 40 % ownership in JHC while the two founders, Peter
Lau and Lisa Ngai, have together retained a 60% stake. JHC is the
largest discount house-ware retail chain in Hong Kong with more
than 200 directly owned stores. In addition, there are
approximately 80 overseas franchised stores in the Philippines,
Malaysia, Dubai, Australia and Saudi Arabia.
JHC was established in 1991 by the two founders. It targets
primarily the general "Home and Living" market with plastic-ware
and housekeeping products as signature categories. The core
strategy is to offer high-quality, value-for-money products. In
2009 JHC had sales of more than USD 100 million.
"Japan Home Centre has an impressive track record of consistent
revenue and profit growth and strong cash flow generation. The
founders have built a very strong platform for further growth. We
look forward to working together with the founders to continue
expanding and improving this business in Hong Kong and overseas
where we believe EQT's capabilities and network can play an
important role," said Fredrik Atting, Senior Partner at EQT
Partners in Hong Kong.
"This investment fits very well with EQT's investment strategy. We
believe that our local presence and understanding of the core
markets together with EQT's broad network of high calibre
industrialists world-wide will be helpful for the management team
to drive expansion both in local markets and overseas," said Martin
Mok, Partner at EQT Partners in Hong Kong.
EQT and the founders intend to pursue growth in overseas markets,
while further penetrating the Hong Kong market with further store
openings. There is also potential to increase sales in existing
stores and enhance operational performance including margin
improvement. The management team, which includes the two founders,
will continue to manage the business.
"We are very pleased to welcome EQT as an owner in Japan Home
Centre and together I am convinced we can take the company to a new
level. The access to EQT expertise and network will be key in this
ambition," said Peter Lau, CEO of JHC and co-founder.
The general investment approach within the EQT funds is to acquire
high-quality, market-leading, mid-sized companies in growing
industries with a clear top-line growth potential. Greater China,
with its increasing consumption trend and strong economic growth,
offers many interesting investment opportunities. There are many
situations where an active private equity owner such as EQT can
develop the companies further. EQT has an extensive global network
of senior advisors with deep knowledge and experience that can
contribute to the invested companies' industrial
acceleration.
EQT Greater China II is one of a group of private equity funds that
has raised approximately euro 13 billion in equity commitments
across 12 funds. EQT Partners, acting as investment advisor to all
EQT funds, has offices in Stockholm, Copenhagen, Helsinki,
Frankfurt, Munich, Oslo, Zurich, New York, London, Warsaw,
Shanghai, Singapore and Hong Kong. EQT funds realise their business
concept by acquiring, financing and developing high-quality medium
sized companies in Northern and Eastern Europe, North America and
Asia. EQT serves as an active owner and works in close co-operation
with the management of the companies it acquires, to develop and
implement value-enhancing strategies. In total EQT funds have
invested in approximately 70 companies.
Contact:
Fredrik Atting
Senior Partner
EQT Partners Asia
Tel: +852-6506-1056
Email: [email protected]
Johan Hahnel
Communications & PR
Tel: +46-706-056-334
Email: [email protected]
SOURCE EQT Greater China II