Carlyle Launches Sale of Japanese Cosmetics Provider Tokiwa in $800 Million Deal, Sources Say

Non-public fairness agency Carlyle Group has begun the sale means of Japanese cosmetics provider Tokiwa Corp in a deal that would worth the corporate at $800 million, three sources with information of the matter mentioned.

Non-binding bids for the corporate are anticipated by mid-March, mentioned the sources, who declined to be named as the knowledge is confidential.

Potential patrons embrace personal fairness corporations and several other corporations within the cosmetics trade, mentioned one among them.

The 75-year-old Japanese firm has about $50 million in anticipated earnings earlier than curiosity, taxes, depreciation, and amortisation (EBITDA), the sources mentioned.

Tokiwa is aiming to fetch a high-teen a number of over the core earnings in a sale, probably valuing the corporate at $800 million or extra, they mentioned.

Carlyle and Tokiwa declined to remark.

Jefferies and SMBC Nikko Securities are advising Carlyle on the sale, sources have mentioned. SMBC Nikko declined to remark, whereas Jefferies didn’t instantly remark.

Carlyle invested an undisclosed quantity in Tokiwa in 2019 by way of its third Japan-focused buyout fund to assist the corporate broaden abroad, it mentioned on the time.

Tokiwa, often called a significant provider of eyeliners and forehead defining pencils to international cosmetics manufacturers, is engaged within the analysis, improvement and manufacturing of beauty merchandise and employs greater than 800 folks around the globe.

Carlyle was one of many first international personal fairness corporations to open an workplace in Tokyo twenty years in the past and has invested greater than 450 billion yen ($3 billion) in additional than 30 Japanese corporations.

By Kane Wu and Makiko Yamazaki; Editor: Gerry Doyle

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