Detailed Description of Portfolio Companies of Fund III

HIVIC Co., Ltd.

Features HIVIC, founded 50 years ago, engages in manufacturing and sales of precut timber and sales of building materials and housing equipment and is ranked No.4 in the segment in terms of annual sales. Its precut timber business serves over 6,000 customers directly (i.e., no middleman) in the regions from Aomori prefecture of northern Japan to Aichi prefecture of central Japan and offer the precut timber and regular timber products manufactured at their own plants. Together with precut timber, it sells other building materials and housing equipment including window frame, exterior wall, lighting equipment and air-conditioners to cater the particular needs of each customer. It also operates a unique member-only direct-bid timber marketplace which secures direct business relationships with many small and medium sized house builders and provides HIVIC with potential to expand product lines via such market place.
Investment Pattern Carve-out from LIXIL Group Corporation
100% Acquisition of the Shares owned by LIXIL
Investment Theme Polaris aims to improve HIVIC’s profitability by enhancing customer-support functions and expanding product lines beyond precut timber through the direct relationships with small and medium sized home builders participating in the direct-bid timber marketplace and also to solidify its unique position/brand in the segment by redesigning the marketing strategy for non-housing wooden buildings and increasing its market share via M&A for the ultimate goal of increasing the enterprise value.
Date of Exit March 2019
Exit Pattern Trade sale of entire holding to YAMAE HISANO., LTD.
Exit Story For YAMAE HISANO., LTD. (“YHC”), an established whole-sale distributor of “food” and “home”-related products in Kyushu, the acquisition of HIVIC would enable them to enter into “home”-related business in Kanto-area, which is to be a significant progress in YHC’s long term strategy of expansion to the markets outside of Kyushu, to enjoy various synergy effects in procurements, human resources and know-hows and, as a result, to increase YHC’s enterprise value through the growth of business of both companies.