Noritsu Koki Co., Ltd. agreed to acquire JLab Audio, Inc. from Eagle Fund II, L.P. of Eagle Private Capital, LLC, Petra Growth Fund II, L.P. of Petra Capital Partners, LLC and others for ¥35 billion.
April 13, 2021
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Noritsu Koki Co., Ltd. (TSE:7744) signed a contract to acquire JLab Audio, Inc. from Eagle Fund II, L.P. of Eagle Private Capital, LLC, Petra Growth Fund II, L.P. of Petra Capital Partners, LLC, PEAG Advisors, LLC and others for ¥35 billion on April 14, 2021. Noritsu Koki will invest in a special purpose company (SPC) established for the purpose of acquiring the equity interest, and the SPC will acquire all the equity interests from the existing equity owners. Noritsu Koki will borrow about ¥35 billion yen from a bank and use it to fund the acquisition of JLab's equity and the payment of advisory fees through his SPC established in the United States. Post completion, JLab Audio will operate as a subsidiary of Noritsu Koki.
For the fiscal year ending 2020, JLab Audio reported total sales of ¥19.9 billion, and net profit of ¥3.2 billion. The Board of Noritsu Koki passed a resolution for the deal on April 14, 2021. The planned date of transfer of ownership is May 10, 2021. The impact on business results for the fiscal year ending December 2021 will be announced appropriately as soon as the details are finalized. Intrepid Investment Bankers acted as financial advisor to PEAG, LLC. Winston & Strawn LLP acted as legal advisor to PEAG, LLC.
Noritsu Koki Co., Ltd. is a company principally engaged in the manufacturing business, healthcare business and other businesses. The Company operates in six business segments. The Manufacturing segment is engaged in the research, development and manufacture of pen nib parts and cosmetics materials, among others. The Healthcare segment is engaged in the research, development and sale of radiological business support services by remote diagnostic imaging in the healthcare area, the analysis of received data and the provision of survey data, among others. The Drug Discovery segment develops new products in biotechnology area. The Senior and Life segment conducts senior publishing and mail order sales business. The Agri-food segment conducts the production and sale of fresh vegetables in the agri-food field. The Others segment conducts new growth related survey and investment business.
Noritsu Koki Co., Ltd. agreed to acquire JLab Audio, Inc. from Eagle Fund II, L.P. of Eagle Private Capital, LLC, Petra Growth Fund II, L.P. of Petra Capital Partners, LLC and others for ¥35 billion.