The Carlyle Group announced that its majority-owned portfolio company Broadleaf Co. went public on the Tokyo stock exchange. Carlyle Japan Partners II acquired Broadleaf in November 2009. The Japanese company is an auto after-market software provider.
Global alternative asset manager The Carlyle Group (Japan co-representatives: Tamotsu Adachi/Kazuhiro Yamada; headquarters: Washington, D.C.; hereinafter Carlyle) today announced that its majority-owned company, Broadleaf Co. Ltd. (Tokyo Stock Exchange First Section, stock code 3673, headquarters Tokyo, Japan; President and CEO: Kenji Oyama) has gone public on March 22, 2013, with its shares trading on the first section of the Tokyo Stock Exchange.
Carlyle sold 16,480,000 (73% of the total number of shares outstanding) of its holdings in Broadleaf and allocated the remaining 2,813,000 shares (13% of the total outstanding) for an over-allotment. Including the over-allotment portion, Carlyle will sell all of its shareholdings. Carlyle Japan Partners II acquired Broadleaf in November 2009.
Broadleaf is one of the largest auto after-market software providers in Japan, providing IT solutions and services to maintenance and repair shops, body shops, dismantlers and parts distributors. With its proprietary IT systems, auto-part databases and network technologies, Broadleaf provides business applications for streamlining operations to 30,000 clients, helping them improve their operational efficiency and support their business development activities.
Since its establishment, Broadleaf has expanded its business as a subsidiary of the publicly traded company, ITX. Broadleaf became independent in November 2009 through a management buyout (“MBO“) supported by Carlyle. The purpose of MBO was to focus on the long-term growth strategy of the company, including business model transformation and overseas expansion, in order to cope with the drastic changes in the automotive industry following the global financial crisis. During the MBO period, Broadleaf worked closely with Carlyle to maximize the company’s business value by focusing on network-based transaction fee to drive revenue growth, strengthening its management and sales teams, introducing strategic products, and expanding into overseas markets. Having accomplished the goals of the MBO, Broadleaf has decided to go public and is well-positioned for the next stage of growth.
Kenji Oyama, President of Broadleaf, said, “Today, I am honored to announce the listing of Broadleaf on the first section of the Tokyo Stock Exchange. Since the MBO in November 2009, Broadleaf has received tremendous support from Carlyle. As a strategic partner with a long-term commitment, Carlyle has helped improve the company’s business structure and develop a sustainable growth strategy. Over the years, we have successfully implemented fundamental strategic initiatives that are instrumental to the growth of the company such as business model changes, organizational reform and overseas expansion. We will continue to accelerate our business growth to meet the expectations of all stakeholders by providing unique IT services that contribute to IT-industrialization of the automobile-related industries.”
Comment on the initial public offering, Tamotsu Adachi, managing director and Japan co-representative of Carlyle Japan LLC, said, “Since our investment in 2009, Carlyle has worked closely with Broadleaf to enhance its business model and expand its overseas operations. The mutual trust between Carlyle and Broadleaf, coupled with President Kenji Oyama’s strong leadership, and the efforts of its management team and all employees, have contributed to the successful transformation of the company. With quality products and solid industry position, Broadleaf is positioned for continued growth and will make substantial contribution to the society as a public company. ”
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $170 billion of assets under management across 113 funds and 67 fund of funds vehicles as of December 31, 2012. Carlyle’s purpose is to invest wisely and create value on behalf of our investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs 1,400 people in 33 offices across six continents.