U.S. investment firm to acquire Japan’s top used-motorcycle dealer group
Nikkei reports that Bain Capital, a U.S.-based investment firm, will acquire Red Baron, Japan’s top pre-owned motorcycle dealer group. The purchase is estimated to be worth nearly 100 billion yen ($694 million USD).
As Nikkei reports, Bain Capital will acquire a majority stake in Red Baron from its founding family and investors. The investment firm says it will help with the transition to digital retailing and also plans to list the company on the stock exchange.
According to the report, Red Baron earned 88.9 billion yen ($608 million USD) in revenue in 2023 and operated 306 dealerships across Japan as of the end of November. The company’s earnings are about 10 billion yen ($69 million USD).
The company was founded as Yamaha Auto Center in Okazaki City, but as it expanded to over 300 locations nationwide, the dealership group changed its name to the Red Baron Group.Â
Red Baron, founded in 1972, saw high growth during Covid, but the death of its founder, Hitoshi Sugiura, last year may have prompted the ownership change. Japan has also been attractive for private equity firms since the yen is weak and interest rates in the U.S. are still high.
Source: Nikkei Asia, Ride Apart
