TOKYO, Nov. 15 /PRNewswire/ -- Bain Capital today announced the signing of a definitive agreement to acquire Citigroup Inc.'s controlling stake in Japan's leading call center operator, BELLSYSYTEM24, in a tender offer valuing the company at approximately 100 billion yen (equivalent to US$1.1 billion).
Bain Capital has received committed financing for the transaction from Japan's largest banks - Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Mizuho Corporate Bank. The transaction, upon completion, would be the largest buyout in Japan in nearly two years.
"BELLSYSYTEM24 is the industry leader in the Japanese call center market. We believe there is a significant opportunity to grow the business as companies continue to look for ways to not only lower costs, but also benefit from greater efficiency and flexibility by outsourcing their call center operations," said Yuji Sugimoto, a Managing Director at Bain Capital.
Bain Capital established offices in Tokyo in 2006, and has a team of 20 investment and operations professionals in Japan to pursue investment opportunities and work with its portfolio companies. The firm has a strong track record of partnering with management teams and employees to build significant value. Bain Capital has made investments in a variety of leading companies with principal or significant operations in Japan, including MEI Conlux, Sun Telephone, D&M Holdings, Toys "R" Us, and Burger King. The firm also has prior experience investing in the call center industry having invested successfully in Stream International, a leading US call center company.
Under the terms of the tender offer, Citigroup Capital Partners Japan, a subsidiary of Citi, will receive cash consideration for its 93.5% stake in BELLSYSYTEM24. The tender offer is expected to be launched on or before November 20, 2009, and to be settled on December 30, 2009. The tender offer is subject to regulatory review and customary closing conditions.
Bain Capital was advised by Ropes & Gray, Nagashima Ohno & Tsunematsu, PricewaterhouseCoopers, UBS, Nikko Cordial Securities, Mizuho Securities, and Morgan Stanley. Citigroup Capital Partners Japan was advised by Citigroup Global Markets Japan and Goldman Sachs Japan.
About BELLSYSYTEM24, Inc.
BELLSYSYTEM24, Inc. (http://www.bell24.co.jp/) provides marketing and customer service solutions to its clients through a nationwide network of contact centers in Japan. The company's service offering includes e-commerce and e-support services; customer relationship management ("CRM") and e-CRM support services; research and marketing promotional services; content planning, production, distribution, and information services; pharmaceutical and medical support services; and communication-based marketing services. These services are offered to clients in various industries, including telecommunications, cable, broadband, satellite broadcasting, Internet services, technology, and financial services.
About Bain Capital
Bain Capital, LLC (http://www.baincapital.com/) is a global private investment firm that manages several pools of capital including private equity, high-yield assets, mezzanine capital and public equity with more than $60 billion in assets under management. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in over 300 companies around the world, including investments in a broad range of companies such as SunTelephone, D&M Holdings, MEI Conlux, Stream International, Toys "R" Us and Burger King. The firm has a team of over 300 professionals dedicated to investing in and supporting its portfolio companies. Headquartered in Boston, Bain Capital has offices in Tokyo, Hong Kong, Shanghai, New York, London, Munich and Mumbai.
About Citi
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Additional information may be found at http://www.citigroup.com/ or http://www.citi.com/.
Bain Capital, LLC
CONTACT: Alex Stanton of Stanton Public Relations & Marketing,
+1-212-780-0701, or astanton@StantonPRM.com, for Bain Capital, LLC
Web Site: http://www.baincapital.com/
http://www.citigroup.com/
http://www.citi.com/
