Bain Seeks $1 Billion for Japanese Hot Spring Operator, Sources Say
(Bloomberg) -- Bain Capital has revived a plan to sell Ooedo Onsen Monogatari, an operator of about 38 hot spring inns and resorts across Japan, according to people with knowledge of the matter.
The U.S. investor is seeking to raise at least $1 billion from the sale, said the people, asking not to be identified as the information is private. Boston-based Bain bought the Japanese company in 2015 for about 50 billion yen ($449 million), the Nikkei newspaper reported at the time.
Bain has approached a few suitors in China, the people said. Deliberations are at an early stage and Bain may not proceed with a sale, the people said. A representative for Bain declined to comment.
About two years ago, Bain had collected bids from investment funds, seeking to sell the asset for more than 100 billion yen, Bloomberg News has reported. It was also considering an initial public offering for the business.
The hot-spring resort operator has come under pressure after the coronavirus pandemic forced travel curbs and effectively crippled in-bound tourism. Its flagship facility at Odaiba in Tokyo shut down on Sept. 5, according to its website, after the government announced a state of emergency in the city. However, in a statement, the company attributed the closure to an expiration of a rent agreement.
The Odaiba facility was designed to evoke the atmosphere of Tokyo during feudal times, when it was called Edo, or sometimes Ooedo -- “Big Edo.”
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