By Kosaku Narioka


Swedish investment company EQT plans to take Japanese education services provider Benesse Holdings private in a deal valued at more than $1 billion, by teaming up with the company's founding family.

EQT said Friday that one of its funds would spend 207.95 billion ($1.37 billion) to buy Benesse shares through an tender offer as part of a management buyout. EQT said the fund wants to start the tender in early February.

Benesse said its board supported the EQT's offer and recommended that shareholders tender their shares.

The EQT fund plans to acquire all outstanding shares except a 17% stake held by two entities run by the founding family. The fund said it was making the offer based on discussion with Benesse's former president Soichiro Fukutake and director Hideaki Fukutake, who are members of the founding family.

Benesse offers education services and also operates nursing care homes in Japan. It has more than 16,000 employees, and earned Y11.35 billion in net profit on revenue of Y411.88 billion in the fiscal year ended March.

EQT wants to accelerate Benesse's growth with its experience developing education and elderly care services worldwide. EQT said the country's education sector is growing, driven by an increasing demand for adult training and reskilling, as well as demand for children's online learning. The nursing care sector is receiving a tailwind from Japan's aging population.

The tender offer price is Y2,600 per share. Benesse shares closed Friday 6.5% higher at Y1,908.0, following a report from Japanese business daily Nikkei about the possible buyout.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

11-10-23 0437ET