Carlyle Group has initiated the sale process of Tokiwa Corp, a Japanese cosmetics supplier, in a deal that could value the company at $800 million, according to three sources familiar with the matter. Non-binding bids for Tokiwa Corp are expected by mid-March, with potential buyers including private equity firms and companies within the cosmetics industry.
Tokiwa Corp, a 75-year-old Japanese company, is expected to have around $50 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). The company aims to achieve a high-teen multiple over its core earnings in the sale, potentially valuing it at $800 million or more.
Both Carlyle and Tokiwa declined to comment on the matter. Jefferies and SMBC Nikko Securities are advising Carlyle on the sale process, though both firms have refrained from providing comments.
Carlyle had previously invested in Tokiwa in 2019 through its third Japan-focused buyout fund, aiming to support the company’s overseas expansion efforts.
Tokiwa Corp is recognized as a major supplier of eyeliners and brow defining pencils to global cosmetics brands. The company is involved in research, development, and manufacturing of cosmetic products and employs over 800 individuals worldwide.
Carlyle Group, which established an office in Tokyo two decades ago, has invested over 450 billion yen ($3 billion) in more than 30 Japanese companies, showcasing its significant presence and investment activity in the Japanese market.