Carlyle set for partial exit from Japan's Tsubaki Nakashima

According to a market filing. Carlyle will sell about 17.7 million shares in the company, primarily to overseas investors and underwriters, at a price to be determined later this month. The stock fell about 6% following the announcement and was trading at JPY2,188 as of mid-morning September 11.

Founded in 1934, Tsubaki supplies steel balls to bearing manufacturers in Japan and overseas. Products include industrial precision balls, rollers, cages and sheet metal parts as well as ball screws and large scale blowers.

Last month, the company completed the acquisition of Precision Bearing Components, a similar business with a presence in the US and Europe, as part of a global growth initiative. It has a market capitalization of around JPY90.1 billion.

Carlyle acquired a 95.6% position in Tsubaki in 2011 in a deal with previous owner Nomura Principal Finance (NPF) said to be valued at JPY70 billion, including debt. NPF bought a 97.2% stake in the company in 2007 for JPY101.4 billion and subsequently de-listed it from both the Tokyo and Osaka stock exchanges.

Re-listing during the Carlyle holding period was considered as early as 2012, when a proposed $555 million IPO was called off due to weak market conditions. The company re-listed on the Tokyo Stock Exchange in late 2015, with Carlyle selling shares representing about a 51% stake.

Carlyle invests in Japan via both dedicated country funds and pan-Asian buyout vehicles. The GP closed its most recent Japan fund at almost $1 billion last year with a view to pursuing corporate carve-outs and succession planning deals. Its fifth Asia fund was launched in July with a target of $5 billion.

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• Topics
• North Asia
• Exits
• Open market
• Industrials
• The Carlyle Group
• Japan
• manufacturing