Pioneering Business Succession: ORIX's Mission to Preserve Legacy and Drive Performance at DHC

ORIX has emerged as a key player in the area of business succession in Japan, where it works with private Japanese companies to identify paths to the future as they transition from their original founder-owner to a future-proof management structure. A survey conducted by Teikoku Databank found that, as of 2020, around 67 percent of Japanese companies see business succession as a management issue, with nearly 12 percent viewing it an issue of the highest priority. ORIX Group’s Purpose of “Finding Paths. Making Impact.” aligns seamlessly with the ambition of helping private businesses transition while preserving their legacy and driving performance.

Respecting legacy to usher in the re-birth of DHC

Midori Miyazaki, President and Chief Operating Officer of DHC discusses the brands flagship cosmetic product “DHC Olive Virgin Oil” with Hiroyuki Odaka, Executive Vice President of DHC.

DHC Corporation, a global heavyweight in skincare and health products, embarked on a business succession journey with ORIX when it was officially acquired by the company in January 2023. The subsequent launch of 'Project Bright' in February 2023, a corporate reform initiative aimed at fortifying governance, streamlining production management, and redefining business strategies, proved to be a turning point.

“The project operates with a bottom-up approach, enabling the company to adapt to changes and foster employee commitment,” says Hiroyuki Odaka, Executive Vice President of DHC who was seconded from ORIX. The company is using the second founding as an opportunity to become more transparent and open: DHC continues to cultivate a culture of independent decision making, such as through town hall meetings, allowing direct dialogue between management and employees. He adds, “with the support of ORIX's robust management infrastructure, we strongly believe DHC is poised for an exciting new chapter of growth and innovation. I have been involved in business succession for many companies. In each case I emphasized a hands-on collaboration with both employees and management, fully immersing myself in the challenges alongside them. Currently, we are working on the succession of DHC with a diverse team from ORIX, including seven in Japan and four in Shanghai and Taiwan, joining forces to enhance the value of DHC. Our role is to support DHC by accelerating progress and implementing a global strategy for sustainable growth.”

Organic olive groves in Andalusia, Spain. Even in Spain, the world's largest producer of olives, only about 2% of the country's total production is certified organic.

Founded in 1972, the story of DHC really began when the company's founder embarked on a worldwide quest for the highest quality olive oil after learning about its skincare benefits from a researcher. This journey led him to a Spanish olive farmer who shared his dedication to tradition and quality. The resulting partnership gave birth to the creation of DHC's flagship product, the DHC Olive Virgin Oil, and launched DHC’s cosmetics business in 1980.

A unique and meticulous oil extraction process, where organic olives are hand-picked to prevent oxidation and the oil extraction process starts within just two hours of harvesting, has played a key role in cementing DHC’s dominance in the in the Japanese cosmetics market, whose consumers are looking for innovative, top-quality products. Midori Miyazaki, DHC’s President and Chief Operating Officer is passionate about the firm’s legacy and future, “ ORIX made it clear that they are dedicated to the idea of growing the business together. We believe that to expand the DHC brand and live up to our customers' expectations going forward, leveraging ORIX's robust management foundation is the best course of action. DHC is not just a company with a long history, but one that continually challenges the status quo. Our commitment to quality, customer-centric approach, and innovative spirit have positioned us uniquely in the cosmetics industry.”

ORIX’s strategy for navigating business succession at DHC mirrored a profound respect for the company's established cultural ethos and a dedication to nurturing the enterprise's growth. This journey with DHC showcases how ORIX is well equipped with a wealth of opportunities to help private, founder-owned companies in Japan transition to their next management structure. ORIX Group is committed to a culture of finding opportunity in change and the business succession area is a leading example of how the company is bringing that mindset to life for the benefit of its stakeholders.

PE Investment and Concession

PE Investment and Concession

Private equity investment, operation of airports and water businesses

Back to Top

Page Top