Tokyo, Japan – June 6, 2024 – Global investment firm Carlyle (NASDAQ: CG) today announced it has agreed to sell 100% of Tokiwa Cosmetics Group (collectively with Tokiwa Corporation and its subsidiaries, “Tokiwa”), a global cosmetics research, development, and manufacturing company, to Nihon Kolmar Holdings (collectively with TOA Inc., its 100% subsidiary, “TOA Group”), Japan’s largest cosmetics ODM/OEM manufacturer. Terms of the transaction were not disclosed.
Founded in 1948 and headquartered in Nakatsugawa, Gifu Prefecture, Tokiwa is engaged in the research, development, and manufacturing of cosmetic products and is a major supplier to the global cosmetics industry. The business has approximately 400 patented technologies worldwide and supplies leading beauty brands.
Since investing in Tokiwa in 2019, Carlyle has worked closely with the management team to deliver strong growth both domestically in the Japanese market and internationally, including in the U.S. and China. This growth was achieved by expanding sales and marketing functions, increasing production capacity, and improving sustainability features of its products. Furthermore, management was strengthened through the implementation of a team with deep industry knowledge.
Yusuke Watanabe, a Managing Director in the Carlyle Japan advisory team, said: “We have been delighted to partner with Tokiwa over the last five years and support its growth strategy. Through increased production capacity, a strengthened sales & marketing approach, an improved R&D structure, and supply chain optimization, the business has been able to innovate faster, become more globally oriented, and improve operationally. I would like to thank the management and employees of Tokiwa and wish them continued success with TOA Group.”
Yoshihide Kanzaki, President of TOA Inc., stated: “Since its foundation in 1912, we have been continuously engaged in the cosmetics business for more than a century. We have met the needs of various business partners as the largest group company within the domestic cosmetics contracting market. We are pleased to be working with a strong partner like Tokiwa as we continue to provide high value-added services and further promote global expansion. Together with everyone at Tokiwa, we will work as one group company where everyone can play an active role while taking on new challenges for the next 100 years as the largest Japanese group company within the domestic cosmetics contract manufacturing industry.”
Carlyle has a strong track record of helping its portfolio companies drive business growth and value creation. Carlyle’s Japan buyout platform has invested more than JPY 450 billion across approximately 40 private equity investments since 2000 and has a well-established history of investing in the Consumer, Retail and Healthcare sectors in Japan. Investments in this space include Orion Breweries, Meisui Bijin Factory, Sunsho Pharmaceutical Co., Ltd., The Oyatsu Company Ltd., and Solasto Corporation.
Jefferies and SMBC Nikko Securities Inc. served as financial advisors while Nishimura & Asahi (Gaikokuho Kyodo Jigyo) served as legal advisor to Carlyle for this transaction.
