The Longreach Group has reaped an IRR of 60% and a money multiple of around 2.5x on its 24.2 billion yen ($300 million) sale of Japanese logistics company Sanyo Electric Logistics.
The Hong Kong-headquartered private equity firm sold the 95% stake it acquired in July 2010 to Sanyo Logistics' local competitor, Mitsui Soko. Market sources cited the appearance of a willing trade buyer as the reasoning behind the short holding period.
Mitsui Soko, which began as a warehousing company in 1909, purchased the remaining 5% of Sanyo Logistics' equity from its parent company, Sanyo Electric, which was itself acquired by Panasonic in November 2009.
Longreach originally took the logistics subsidiary private 18 months ago. When it was delisted from the JASDAQ board, Sanyo Logistics' total value was estimated at around JPY17.9 billion ($195 million).
Longreach aimed to work with the firm to establish a comprehensive outsourced logistics offering that covered logistics services for sales, production and procurement operations, as well as cultivating an overseas business platform outside of Japan.
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