Carlyle to invest $970m in Japanese analytical instruments maker Rigaku

Photo: Reuters

US private equity firm Carlyle Group will invest about 100 billion yen ($970 million) in Rigaku, a major Japanese manufacturer of analytical instruments, offering funding access and management know-how to pave the way for an initial public offering within the next few years.

A new holding company will be set up to buy out existing shareholders, split 80-20 between Carlyle and Rigaku President Hikaru Shimura. This investment, expected to come before the end of the fiscal year in March, will likely be the first by a $2.3 billion Japan-focused fund, the largest of its kind, set up by Carlyle last year.

The move comes amid a recent push into Japan by global private equity firms as governance reform gains momentum. Carlyle, which opened a Tokyo office in 2000, plans to pour more than $9 billion into Japanese businesses over the next three to five years.

Carlyle will send directors to Rigaku and encourage global expansion, including acquisitions, opening new sales channels and developing new products. Funds consider it less risky to invest in companies that have reached a certain scale, and businesses can expect to earn more from an IPO after expanding their operations.

Rigaku, established in 1951, is among the world’s top manufacturers of equipment for X-ray analysis, and it sells instruments for the medical and semiconductor industries as well. The company reported about 44.1 billion yen in revenue for the fiscal year ended March 2020, with about 65% generated overseas.

Carlyle’s previous investments in Japan have centered on midsize companies, such as Oyatsu, maker of the Baby Star snack brand.

The article was first published on Nikkei Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.