Global investment firm The Carlyle Group has kicked off the sale process for Tokiwa Corp, a renowned Japanese cosmetics supplier, anticipating a deal that could value the company at an impressive US$800 million. With a rich 75-year history and an anticipated EBITDA of US$50 million, Tokiwa is garnering attention from private equity entities and cosmetics firms alike.
Tokiwa is actively seeking a sale price that surpasses its US$800 million valuation, a strategic move that aligns with Carlyle’s investment strategy aimed at international expansion since 2019. The sale proceedings are being guided by financial advisory firms Jefferies and SMBC Nikko Securities, underscoring Carlyle’s deliberate approach to optimizing its investment portfolio.
Carlyle’s initial investment in Tokiwa was strategically geared towards enhancing the company’s footprint in the international market. Recognizing Tokiwa’s significant role in the cosmetics industry and its global workforce of over 800 employees, Carlyle aims to capitalize on the potential offered by the current sale.
This divestiture is a key component of Carlyle’s broader strategy in the Japanese market, emphasizing its sustained involvement over the past two decades through substantial investments. The sale of Tokiwa Corp marks another milestone in Carlyle’s ongoing engagement in Japan, showcasing its commitment to navigating and optimizing its investment presence in the dynamic Japanese business landscape.
