The Carlyle Group has agreed to invest in TOKIWA, a Japanese cosmetics company. No financial terms were disclosed. Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. is serving as financial adviser to Carlyle on the transaction while Nishimura & Asahi is providing legal advice.
Tokyo, Japan – Global investment firm The Carlyle Group (NASDAQ: CG) today announced that it has agreed to invest in TOKIWA Corporation (TOKIWA), a global cosmetics company engaging in the research, development and manufacturing of cosmetic products through a strategic business and capital alliance.
Headquartered in Nakatsugawa, Gifu, TOKIWA has been established for more than 70 years and is well-known for its innovations in cosmetic formulations and componentry. TOKIWA has advanced research and development capabilities with more than 400 patents worldwide, and is a supplier to prominent beauty brands around the world. A steady supply of high-quality products and its agility to respond to rapidly growing market demand has enabled TOKIWA to develop a strong reputation among its business partners. The company is also well positioned to benefit from the rising demand and admiration for safe, quality “Made in Japan” cosmetic products, fuelled by a booming tourism market.
Through the alliance, TOKIWA will work with Carlyle to establish itself as a global leader in the cosmetics manufacturing industry. Carlyle will leverage its in-depth knowledge of the cosmetics and consumer industries, corporate management skills, as well as its global network, to support TOKIWA’s marketing efforts and brand positioning in the growing global cosmetics market and lay the foundations for the company’s business expansion. Carlyle will help TOKIWA and its partners achieve further growth, deliver value to consumers, and support TOKIWA to become a “valuable global company that can continue sustained, long-term growth” as indicated in the company‘s philosophy.
Hitomi Hibino, Executive Vice President of TOKIWA, said, “Since our founding, we have continued to change and innovate. With ‘Sustainable Innovation’ as our motto, we have always strived to turn our customers’ confidence into lasting trust. We are pleased to work with Carlyle, which has a proven record in Japan and will add impetus to our organization’s initiatives.”
Yusuke Watanabe, Director of the Carlyle Japan advisory team, said, “We are very pleased to have been chosen as TOKIWA’s strategic partner. We will work to enhance TOKIWA’s business operations, assist its marketing efforts, and expedite the company’s domestic and overseas expansion. We look forward to working with TOKIWA as the company continues to create ’beauty, emotion and joy‘ for its customers around the world.”
Equity for this transaction will come from Carlyle Japan Partners III, L.P., Carlyle‘s third buyout fund in Japan. As one of the first global players to enter the Japanese market, Carlyle has engaged in investment activities in Japan since 2000, with 25 investments.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. is acting as exclusive financial advisor to Carlyle, while Nishimura & Asahi is acting as legal advisor.
About TOKIWA Corporation
July, 23, 1948
3-20, Momoyamacho, Nakatsugawa, Gifu
Research, development and manufacturing of cosmetics (for detail, please refer to the website:
TOKIWA HOLDINGS AMERICA, INC. (US)
TOKIWA COSMETICS AMERICA, LLC. (US)
KUNSHAN TOKIWA COSMETICS CO., LTD. (China)
TOKIWA SUBIC CORPORATION (Philippines)
SONAX CORPORATION (headquartered in Saitama, Japan)
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $216 billion of assets under management as of December 31, 2018, Carlyle’s purpose is to invest wisely and create value on behalf of our investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,650 people in 31 offices across six continents.
The Carlyle Group is the only global investment firm that has dedicated Japan buyout funds denominated in Japanese yen. Carlyle’s Japan buyout funds, which have made 25 investments in Japan, have experience supporting Japanese companies’ business expansion overseas, enhancing their operational efficiency and strengthening their management infrastructure.