Established in 2006, Wellness Communications Corporation (“WCC”) is a leading healthcare software-as-a-service (“SaaS”) and outsourcing company in Japan. WCC offers two core and high customer demand growth services: health management system software mainly for large enterprises and medical checkup outsourcing services mainly for corporate health insurance associations.
Corporate Divestiture. Longreach acquired shares of WCC from ITOCHU Corporation (“ITOCHU”). The transaction was originated based on Longreach’s long-term relationship and strategic dialogue with ITOCHU and Wellness Communications. The transaction was closed in March 2023.
Established in 1994, Pokka Create is one of the leading operators of self-service coffee shop chains in Japan, with 201 stores (at the acquisition) mainly under the brand “CAFÉ de CRIÉ”. Integrating with C-United, which operates “Kohikan” and “Caffè Veloce” coffee chains, Pokka Create became part of C-United in January 2023.
Corporate Divestiture. Longreach acquired 100% of Pokka Create from Sapporo group through C-United, negotiated through a control buyout in April 2022, and executed as abolt-on acquisition.
Quasar Engineering (“Quasar”) is a contract development and manufacturing organization (“CDMO”) for the medical device industry, servicing leading global OEMs such as Johnson & Johnson and Medtronic, specializing in the assembly of complex minimally invasive components and devices across therapeutic areas, with focus on the cardiology space. Quasar is headquartered in Hong Kong, with assembly facilities in China, Thailand, and Singapore and R&D resources in Israel.
Founder Succession. Longreach acquired a majority stake in Quasar in 2019 from the founding family, with the founders retaining a significant minority stake.
Established in 1970, Kohikan is the second-largest full-service coffee shop business in Japan, with 277 stores (at the acquisition) and a strong brand profile nationwide. It operates under the Kohikan, Café di Espresso, Kohikan-Kura brands. Integrating with the Chat Noir Company, which operates the Caffe Veloce coffee chain, Kohikan became part of C-United in April 2021.
Corporate Divestiture. Longreach acquired 100% of Kohikan from UCC group, negotiated through a control buyout in May 2018.
NOC was established as a subsidiary of Olympus. NOC evolved into a one-stop BPO service provider with a business track record including over 700 companies since 1988. The Company provides a wide range of services including back-office services (general affairs, accounting, HR, payroll), IT services (infrastructure building, kitting), fulfillment and logistics, staffing and others. It has a well diversified blue-chip customer base including large Japan conglomerates, global firms, and government agencies, in addition to Olympus.
Corporate Divestiture. As a part of its business refocusing plan, Olympus decided to divest non-core businesses including its back-office support business and its camera business. Longreach negotiated the 100% acquisition of NOC in October 2016, being entrusted by Olympus with repositioning NOC for long term growth as an independent BPO service provider.
Primo specializes in the production and retail of semi-customized bridal jewelry, including engagement rings and wedding rings. At investment, the Company operated three brands, I-PRIMO, Lazare Diamond and SELEXIA, and has a total of 88 stores in Japan (76 stores), Taiwan (10 stores) and Hong Kong (2 stores). The Company has a strong presence in Japan, with the leading position in engagement and wedding ring sales, and has a track record of success in overseas expansion into Taiwan and Hong Kong.
Unlocking Growth. Longreach acquired a majority stake with the current management including the CEO reinvesting. Transaction was closed in January 2015.
Formerly a subsidiary of Hitachi, Via Mechanics (“VIA”) is a global leader in manufacturing micro-drilling machines for printed circuit boards (“PCBs”) and semiconductor packages, used mainly for data center server computers, automotive electronics components and smartphones. Products include spindle micro-drilling machines, laser micro-drilling machines, and exposure machines, mainly sold to manufacturers of PCBs and semiconductor packages. Leveraging leading optical technology and machine performance, VIA maintains leading market share globally.
Corporate Divestiture. VIA was determined by Hitachi to be a strategic divestment. Longreach acquired 100% of VIA through a negotiated control buyout with Hitachi providing seller financing to show its support for the transaction. The deal was proprietary, originated through Longreach’s long-term senior relationship with Hitachi, enabling multi-year strategic dialogue and proposals leading to agreement on the divesture.
SANYO Electric Logistics (“SEL”) was originally established in 1971 as a subsidiary of SANYO Electric, to handle its logistics operations, and was a Tokyo Stock Exchange listed public company prior to Longreach’s investment. SEL evolved into a leading 3PL provider with a dominant position in providing logistics services to the large domestic electronic retail chains, focusing on providing comprehensive logistics solutions to customers through IT and leveraging its network/platform. With asset heavy/labor intensive processes such as trucking outsourced, SEL operates an “Asset Light” model.
Corporate Divestiture and Going Private. After the strategic merger of SANYO and Panasonic, Panasonic decided to have SANYO divest SEL to Longreach, executed through a going-private tender offer process for the 42% public stake combined with the acquisition of SANYO Panasonic’s 58% control stake. SANYO Panasonic reinvested a 5% stake to support its continued business relationship with SEL.
OCC manufactures submarine optical cables, onshore communication cables and marine communications equipment. The submarine business is large scale project drive with only three major players globally: Tyco, Alcatel, and OCC. The onshore cable business is stable with major clients including NTT, KDDI, NEC, railway companies, and government agencies.
Unlocking Growth. 100% buyout from a Japan Government Fund (IRCJ). After large capital expenditures funded by high leverage in the late 1990’s, OCC was hit by the global slowdown of telecom network investments from early 2000. OCC subsequently was rescued by the Japanese Government controlled IRCJ, as its temporary owner. The IRCJ selected Longreach as the sponsor to acquire and drive the resurgence of OCC. Longreach executed the acquisition of OCC on an exclusive basis, as a 100% control buyout in September 2006.