Bain Capital to acquire Domino's Pizza master franchisee in Japan

Bain Capital, a global private investment firm, has signed a definitive agreement to acquire Higa In

The company will acquire Higa Industries from its three current shareholders namely Duskin, Daiwa SMBC Capital, and Ernest Higa, the company's founder and CEO.

Domino's Pizza has been operating in Japan under an exclusive master franchise agreement between Higa Industries and Domino's Pizza International, a wholly owned subsidiary of Domino's Pizza. Higa Industries currently operates 179 franchised Domino's Pizza stores in Japan. Domino's Pizza runs around 8,000 stores in over 60 countries.

David Gross-Loh, a managing director at Bain Capital in Tokyo, said: "Under the franchise agreement with Higa Industries, Domino's Pizza has built a strong competitive position in the pizza delivery industry in Japan by leveraging its distinctive product, high quality service, and unique online marketing strategies."

Yuji Sugimoto, a managing director at Bain Capital, added, "We look forward to working with the Higa Industries team to support the continued growth of Domino's Pizza in Japan and further strengthen its competitive edge. We believe there are significant opportunities for store growth, operational improvement, and attractive new product introductions, all of which can be aided by our knowledge of Domino's Pizza and the resources of its global operations network."

Bain Capital acquired a majority stake in Domino's Pizza in a private transaction in 1998. Domino's Pizza became a public company in 2004, and Bain Capital retains a significant minority stake in the company.

Bain Capital has also made investments in Burger King. The firm's experience in the QSR and food service industry includes current investments in Dunkin' Brands (Dunkin' Donuts and other brands), and OSI Restaurant Partners (Outback Steak House and other brands).

The transaction is expected to close in early February. Bain Capital has received committed financing for the deal from the Bank of Tokyo Mitsubishi UFJ.