Carlyle to sell Japanese cosmetics supplier Tokiwa in $1 billion deal -sources

HONG KONG/TOKYO : Carlyle Group is planning to sell Japanese cosmetics supplier Tokiwa Corp in a deal that could fetch $1 billion, two sources with knowledge of the matter said.

The investment firm has tapped Jefferies and ‎SMBC Nikko Securities as advisors to work on the sale of the 75-year-old company, which will kick off early next year, said one of the people, who both declined to be named as the information is confidential.

Carlyle, Tokiwa, Jefferies and ‎SMBC Nikko declined to comment.

Carlyle invested an undisclosed amount in Tokiwa in 2019 via its third Japan-focused buyout fund to help the Nakatsugawa, Gifu-headquartered company expand overseas, it said at the time.

Tokiwa, known as a major supplier of eye liners 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 a total of more than 450 billion yen ($3 billion) in more than 30 Japanese companies.

($1 = 149.4500 yen)