29 May 2024

BDA advises NSSK on sale of ORF/IIT to Hokkaido LogiService

divested Oriental Foods and IIT Corporation to

2024

BDA Partners is pleased to announce that its client, Nippon Sangyo Suishin Kiko (“NSSK”), has sold its stake in Oriental Foods Co Ltd (ORF) and IIT Corp (IIT) to Hokkaido LogiService Co Ltd, a subsidiary of CO-OP Sapporo.

BDA was the exclusive financial advisor to NSSK on the transaction. Terms of the transaction were not disclosed.

ORF, founded in 1978, sells wholesale fruits and vegetables to supermarkets in Hokkaido, northern Japan. IIT was established in 1988, as the logistics division of ORF. Together with affiliated companies, IIT operates a logistics business, catering to supermarkets and discount stores across Hokkaido.

The ORF/IIT Group is a key player serving supermarkets and discount stores in Hokkaido. It operates seven logistics centers, covering three temperature zones, and a fleet of over 300 trucks, with a robust infrastructure to support its operations. The group’s distribution centers are mainly located in Ishikari City, a key location for food distribution in the Sapporo metropolitan area. The fruit and vegetable wholesale business of the ORF/IIT Group holds a strong market share in Hokkaido, particularly in niche product categories like bean sprouts and citrus fruits. Both segments of the business are thriving, in a stable market environment with a loyal customer base, indicating solid and sustainable growth for the Group.

Suguru Sasaki, Director, BDA Partners, said: “We’re pleased to have helped ORF and IIT find a new partner in Hokkaido LogiService. Japan’s logistics industry is facing critical issues such as the 2024 Logistics Problem, which may significantly impact people’s daily lives due to a shortage of truck drivers. Logistics companies must strive for effective management, while encouraging collaboration and support from related companies to tackle the structural challenges within the logistics industry. We’re confident that ORF and IIT will thrive as part of CO-OP Sapporo group. We’re proud to have advised NSSK, a leading Japanese private equity firm, which was awarded the “Firm of the Year in Japan” by Private Equity International in five of the last seven years.”

Deal team

About Nippon Sangyo Suishin Kiko

Nippon Sangyo Suishin Kiko Group (NSSK) is an investment management business with a focus on Japan. Its mission is to build a leading alternative asset investment business in Japan by investing in attractive Japanese companies in partnership with management, contributing to the Environment, Society and Governance of Japan and beyond. NSSK’s investment strategy is to seek to generate superior outcomes by applying global investment discipline, operating expertise and human capital to Japanese companies originating from our proprietary and differentiated sourcing network. NSSK was named “Firm of the Year in Japan” award by Private Equity International in 2017, 2018, 2020, 2022 and 2023. https://nsskjapan.com/en/

About Hokkaido LogiService Co, Ltd

Hokkaido LogiService Co Ltd is headquartered in Ebetsu, Hokkaido, and operates as a subsidiary of CO-OP Sapporo. CO-OP Sapporo is known for its supermarkets and delivery services throughout Hokkaido. Hokkaido LogiService specializes in handling logistics operations exclusively for CO-OP Sapporo. This includes managing logistics centers, mainly located in Ebetsu, to support CO-OP Sapporo’s store operations and delivery services. Additionally, it provides warehouse management and distribution services to external corporate clients.

CO-OP Sapporo is a consumer cooperative in Hokkaido with over 2 million members. CO-OP Sapporo is committed to its motto “Connect”, its philosophy of “Taking pride and joy in living in Hokkaido”, and its mission of prioritizing “Safety” and “Innovation.” CO-OP Sapporo operates 109 stores and 51 delivery service centers in Hokkaido. Together with its members, it also engages in various business activities including the development of safe and reliable products, support for child-rearing, and social contribution initiatives related to food and the environment. https://www.sapporo.coop/corporate/

About BDA Partners

BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with 25 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services, Sustainability and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes.

BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese government-owned bank with US$150bn of assets.

US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc, a broker-dealer registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc is a member of the Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorized and regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd is licensed and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated activities to professional investors. www.bdapartners.com

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