Carlyle launches sale of Japanese cosmetics supplier Tokiwa in $800 million deal, sources say
The 75-year-old Japanese company has about $50 million in expected earnings before interest, taxes, depreciation, and amortization (EBITDA), the sources said.
Private equity firm Carlyle Group has begun the sale process of Japanese cosmetics supplier Tokiwa Corp in a deal that could value the company at $800 million, three sources with knowledge of the matter said. Non-binding bids for the company are expected by mid-March, said the sources, who declined to be named as the information is confidential. Potential buyers include private equity firms and several companies in the cosmetics industry, said one of them.
The 75-year-old Japanese company has about $50 million in expected earnings before interest, taxes, depreciation, and amortization (EBITDA), the sources said. Tokiwa is aiming to fetch a high-teen multiple over the core earnings in a sale, potentially valuing the company at $800 million or more, they said. Carlyle and Tokiwa declined to comment. Jefferies and SMBC Nikko Securities are advising Carlyle on the sale, sources have said. SMBC Nikko declined to comment, while Jefferies did not immediately comment.
Carlyle invested an undisclosed amount in Tokiwa in 2019 via its third Japan-focused buyout fund to help the company expand overseas, it said at the time. Tokiwa, known as a major supplier of eyeliners and brow-defining pencils to global cosmetics brands, is engaged in the research, development and manufacturing of cosmetic products and employs more than 800 people around the world. Carlyle was one of the first global private equity firms to open an office in Tokyo two decades ago and has invested more than 450 billion yen ($3 billion) in more than 30 Japanese companies.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SBI Amrit Vrishti FD vs Central Bank of India 444-day FD: Which gives higher return to senior citizens on Rs 10 lakh and Rs 20 lakh investments
SIP Calculator: How soon can you build Rs 2 crore retirement corpus by investing Rs 5,100, Rs 11,000 or Rs 21,000 a month; see examples
SBI Sarvottam FD vs Union Bank Sumvridhi FD For Senior Citizens: What will be returns on Rs 5 lakh investment in each guaranteed return scheme
12:55 PM IST