Carlyle to buy Diversey Japan from Sealed Air

Diversey Japan is one of the leading providers of cleaning, sanitation and hygiene products to institutional customers in the Japanese market. According to Sealed Air, the company recorded approximately $321 million for the year ended September 2012.

"With its competitive line-up of products and solutions as well as its strong sales network, we believe the company will continue its significant growth in the future," said Tomotsu Adachi, co-head of Carlyle's Japan buyout group, in a statement. "Diversey Japan's competitive positioning and high growth potential, combined with its unique business model as a total solution provider, have led us to invest in its future development."

The transaction is expected to be completed by the end of this year. The sale of Diversey Japan comes a year after Sealed Air, known for its Bubble Wrap brand, bought Diversey Holdings in a $4.3 billion deal to expand into commercial cleaning and sanitation.

The investment comes via Carlyle Japan Partners II, which received JPY215.6 billion ($1.9 billion) in commitments in 2006, making it the largest Japan-focused vehicle ever raised, although the corpus was subsequently reduced to JPY165.6 billion.

In September, Carlyle used the fund to acquire Walbro Engine Management, a US-based small engine parts manufacturer, from global investment firm Sun Capital Partners via a secondary buyout.

The Walbro came after Tsubaki Nakashima, the Japanese steel ball-bearings maker 95% owned by Carlyle, called off plans for a $555 million IPO. This made it the second Carlyle-backed company in Japan to try and fail to list within six months. Earlier this year, LCD glass manufacturer AvanStrate abandoned its attempt to raise as much as $266 million.

 

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• Topics
• North Asia
• Buyout
• Buyouts
• Industrials
• GPs
• Japan
• The Carlyle Group