Bain Capital to take Snow Peak private in 50 billion yen deal

US buyout fund Bain Capital is set to take Japanese outdoor goods manufacturer Snow Peak private. The management buyout, is valued at approximately 50 billion yen (US$333 million). The deal will aim to enhance Snow Peak's operational flexibility and international brand recognition.

Transaction Snapshot

  • Deal value: 50 billion yen (US$333 million).
  • Deal multiples: EV/Revenue: 1.6x, EV/EBITDA: 18.7x
  • Deal type: Public-to-private acquisition
  • Investors: Bain Capital

The buyout proposal includes a tender offer price of over 1,200 yen per share, representing a significant premium of more than 40% over Snow Peak's closing price of 838 yen on the preceding Friday. At the time of the announcement, Snow Peak's market valuation stood at 32 billion yen, substantially less than the proposed buyout value.

Snow Peak, renowned for its mountain climbing and camping gear, has confirmed its intention to go private with Bain Capital's backing. This partnership is poised to fortify Snow Peak's brand globally and address the challenges posed by the fluctuating demand for outdoor products, exacerbated by the COVID-19 pandemic's aftermath.

Under the leadership of Chairman and President Toru Yamai, Snow Peak aims to leverage Bain Capital's investment to better navigate the market. The company, which started on its public journey in 2014 and reached a peak stock price of 4,490 yen in November 2021, reported record profits for the year ended 2021. 

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