Houlihan Lokey Advises First Juken

Transaction: First Juken - KHC - SOLABLE

Houlihan Lokey is pleased to announce that First Juken Co., Ltd. (First Juken) has entered a definitive agreement with SOLABLE Inc. (SOLABLE) to acquire one of its subsidiaries, KHC Ltd. (KHC), by tender offer. The total purchase price of this transaction is expected to be US$32 million. Houlihan Lokey served as the financial advisor to First Juken.

First Juken is a homebuilder based in Hyogo, Japan, generating approximately US$310 million in annual sales. Its strength is in prefabricated housing. By expanding its business areas geographically through branch development and acquisitions within the housing sector, it aims to drive a business strategy that focuses on sales activities deeply rooted in the local community.

KHC is also a homebuilder based in Hyogo, with approximately US$71 million in annual sales. Although its business is similar to that of First Juken, it specializes in building and selling custom homes. It adopts a multi-brand strategy through various subsidiaries, offering fully customizable home building to meet the diverse needs of its customers.

SOLABLE is a holding company with controlling stakes in eight companies. In 2008, its predecessor, Japan Asia Group, acquired KHC.

This transaction is expected to generate two key synergies, which are likely to lead to further growth for both companies.

Complimentary Businesses

  • Both companies have complementary business models in terms of product range and distribution channels. This will enhance the quality of their products and services and strengthen their sales capabilities.
  • From the perspective of regional expansion in Hyogo, there is also a complementary relationship, and First Juken has identified expanding its market share as a key growth strategy.

Acquiring Housing Design Expertise

  • Since February 2022, the two companies have been engaged in promoting a business partnership, mainly in the field of housing design. Through this transaction, First Juken also aims to acquire KHC's design know-how and human resources.

Houlihan Lokey served as the financial advisor to First Juken and assisted in initiating, structuring, and negotiating the transaction on its behalf. This deal further enhances Houlihan Lokey’s extensive business services track record and showcases our firm’s capability to combine deep sector expertise with local execution capabilities.

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