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Riverside Finds Lots to Like in Japanese Parking Add-On April 01, 2009

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Parking lot operator gives Shinsouki Tokyo foothold

Type:
Add-on acquisition for Shinsouki

Key Stats:
4th Acquisition of 2009
212th Acquisition Overall

Fund Family:
Riverside Asia Fund (“RAF”)

KK MAOS

Based in Tokyo, Japan

  • Founded in 1989 by Akihiko Masuda, who still runs the company
  • Operates roughly 480 lots with 5,000 spaces under the J-PARK name in and around Tokyo
  • Places vending machines in other operators’ lots for additional commission revenue
  • Operates with a small sales force and works with lot owners and brokers to become one of the 20 largest lot operators in Japan.

Of Note:
This is the first add-on acquisition for KK Shinsouki, the largest operator of time-based parking in Niigata City, Japan, and the first add-on for the Riverside Asia Fund. Akihiko Masuda, the KK MAOS CEO, will remain as a shareholder after closing, and will retain an executive position at the company.

Quotes:
Kiyofumi Nakano, Riverside Partner

“KK MAOS gives Shinsouki access to a growing network of profitable lots in the Tokyo region, but it also provides a great opportunity to share operational know-how. The parking industry is facing restructuring and consolidation, and we look forward to helping Shinsouki lead the way.”

Tokihiko Mori, Riverside Operating Partner

“Riverside is excited about integrating KK MAOS and Shinsouki. During our first year of ownership with Shinsouki, we introduced numerous operating improvements that will immediately benefit KK MAOS. We’re looking forward to continuing to develop efficiencies and find compatible strategic add-ons as we build a premier parking lot operator in Japan.”

Akihiko Masuda, KK MAOS Founder and CEO

“Partnering with Riverside was a great alternative to going public, and we liked that Riverside supported our long-term objective of becoming one of the big three within the industry. We believe that with Riverside’s resources, we will be able to take advantages of the change the industry is facing, and grow aggressively to become a true leader in the industry.”

Yukio Tabuse, KK Shinsouki President and CEO

“Entering the Tokyo market was my dream, and I am excited about creating an alliance of regional players. I am also positive that Masuda will help continue growing our combined business.”

Riverside Team: Stu Baxter, Riverside Fund Manager, Tokihiko Mori, Partner; Kiyofumi Nakano, Partner; and Hiroaki Wakashita, Associate. of Riverside Partners KK, which provides consulting services to Riverside.

The Riverside Company (www.riversidecompany.com or www.riversidecompany.com/jp/ for Japanese)

The Riverside Company is the largest global private equity firm focused on the smaller end of the middle market (“SEMM”) and is one of the industry’s most experienced leveraged buyout investors. Riverside invests in premier SEMM companies valued up to $150 million and partners with strong management teams to build companies through acquisitions and value-added growth. Since its founding in 1988, the firm has invested in 212 transactions with $4.7 billion in enterprise value, and has a current portfolio in North America, Europe and Asia consisting of 69 companies. Riverside offers certainty to close and can complete acquisitions in as little as 45 days, thanks to its more than $2.7 billion of capital under management, over 180 professionals in 18 offices (Atlanta, Brussels, Budapest, Chicago, Cleveland, Dallas, Eindhoven, Hong Kong, Los Angeles, Madrid, Munich, New York, Prague, San Francisco, Seoul, Stockholm, Tokyo and Warsaw), and long-standing relationships with partner lenders. As of the end of September 2008, Riverside’s portfolio had combined annual sales of $3.2 billion, EBITDA of $524 million and more than 14,000 employees. Five of the firm’s eight mature vintages were currently top quartile. Riverside’s investors include the world’s leading pension funds, endowments, funds-of-funds, insurance companies and banks.

KK Shinsouki (www.sinsouki.jp)

Founded in 1983, Shinsouki is the leading operator of parking lots in Niigata City, Japan. Combining knowledge of the area and close relations with landowners, Shinsouki operates more than 3,000 parking spaces in the Niigata prefecture.

KK MAOS (www.maos.co.jp)

KK MAOS operates a network of parking lots in metropolitan Tokyo that includes more than 5,000 spaces. The company also operates a vending machine placing business for use on their own lots as well as on other operators’ lots. The company was founded in 1989.

Media Contact

Stephanie Fraser
Marketing Consultant
The Riverside Company
Cleveland: +1 216 344 1267
London: +44 20 3077 1923