Financial details were not disclosed but Carlyle said the equity for the transaction will come from Carlyle Japan Partners III, the group’s third buyout fund in Japan.
Established in 1948, Tokiwa is engaged in the research, development, and manufacturing of cosmetic products. It boasts more than 400 patents and is a supplier to beauty brands around the world.
“Since our founding, we have continued to change and innovate… We are pleased to work with Carlyle, which has a proven record in Japan and will add impetus to our organization’s initiatives,” Tokiwa executive vice president Hitomi Hibino said.
Carlyle, meanwhile, has been engaged in investment activities in Japan since 2000, being one of the first global players to enter the market. In addition, it has a track record of successful investments in cosmetics companies, including Philosophy, Vogue International, as well as prestige brands such as Moncler.
Through the alliance, Tokiwa will work with Carlyle to establish itself as a global leader in the cosmetics manufacturing industry, by expanding its business operations and its footprint not only in Japan but globally.
“Carlyle will leverage its in-depth knowledge of the cosmetics and consumer industries, corporate management skills, as well as its global network, to support Tokiwa’s marketing efforts and brand positioning in the growing global cosmetics market and lay the foundations for the company’s business expansion,” the group said.
Yusuke Watanabe, Director of the Carlyle Japan advisory team, said the group will work to enhance Tokiwa’s business operations, assist its marketing efforts, and expedite the company’s domestic and overseas expansion.
The Carlyle Group is the only global investment firm that has dedicated Japan buyout funds denominated in Japanese yen.