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Acquisition of 100% of Shares in the Japanese Apparel Company Bigi Holdings Co., Ltd.

Jan. 18, 2018


Mitsui & Co., Ltd.
MSD Investments Ltd.


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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) and MSD I Investment Limited Partnership ("MSD Fund"), which is managed by MSD Investments Ltd. ("MSD", Head Office: Tokyo, Representative Directors: Hidemasa Aida, Hiroshi Yasuda) recently reached agreement with shareholders of Bigi Holdings Co., Ltd. ("Bigi HD", Head Office: Meguro-ku, Tokyo, Chairman: Yuji Okusu) and entered into a share purchase agreement providing for the acquisition of 100% of the shares in Bigi HD. MSD Fund will hold 66.6% of shares, and Mitsui 33.4%.

Founded in 1970, Bigi HD is an apparel company that has developed some of Japan's best-known brands, including yoshie inaba, Men's Bigi, MELROSE, and Papas. In recent years its product planning capabilities, backed by accurate anticipation of changing needs and values, has resulted in the creation of new brands based on unique world views, such as martinique and plain people. The Bigi Group has been able to establish a solid position for itself in Japan's maturing apparel market by using the development of these brands to make a wide-ranging appeal, including lifestyle suggestions, to trend-conscious consumers. For over 30 years, the Bigi HD and Mitsui have built a strong relationship of trust through business transactions based on the apparel OEM business and brand licensing. This acquisition reflects compatibility between the growth strategies of Mitsui and MSD, and the future vision of Bigi HD.

Mitsui identified Retail & Services as one of the new growth areas of Mitsui's strength in the Medium-term Management Plan announced in May 2017. Especially in the fashion and textile business, Mitsui has designated sales and marketing business as the key focus area and has expanded its points of contact with consumers, primarily through brands such as Paul Stuart and Max Mara. Going forward, Mitsui will work through organic collaboration with Bigi HD to strengthen the functions of its planning and marketing platforms. In addition to its successes in the development of business based on individual brands, Mitsui aims to formulate a brand portfolio that will enable it to respond more flexibly to drastically changing retail markets. MSD and Mitsui will work to increase the corporate value of Bigi HD and expand its business through strategic acceleration of the introduction of new brands, and the reinforcement of sales channels in growth markets, including e-commerce and overseas markets, by leveraging the wide-ranging expertise and knowledge accumulated by MSD as an investment company and the strengths of Mitsui, including its brand marketing know-how and global networks.

MSD was jointly established in September 2015 by Mitsui, Sumitomo Mitsui Banking Corporation, and the Development Bank of Japan Inc. ("the Three Sponsors") as an investment company operating under the slogan "dedication to the investment business by Japanese companies for Japanese companies." As a partner with long-term perspectives, it works to find solutions to issues that have affected Japanese companies in recent years, such as escalating competition in domestic and overseas markets, and business succession problems. Using the wide-ranging networks and expertise of the Three Sponsors, it helps portfolio companies to achieve independence and sustainability and growth toward the next phase of development.

Profile of Bigi Holdings

Company name Bigi Holdings Co., Ltd.
Business operations Planning, manufacture, and sale of clothing and accessories
Location Meguro-ku, Tokyo
Established 1970 (Bigi Holdings established in 2011)
Shareholdings (after acquisition) MSD Fund: 66.6%, Mitsui: 33.4%

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Akihiro Tamo
Telephone: +81-3-3285-6645
Facsimile: +81-3-3285-9819