CVC's Japan president to join Toshiba

Toshiba’s board said in a statement that it picked Kurumatani rather than make an internal appointment because the company needs an executive with a proven track record of achievement and a perspective formed outside of Toshiba.

Kurumatani’s appointment comes as Toshiba struggles with a number of challenges, such as the bankruptcy of its nuclear power unit Westinghouse, which was acquired last month by Brookfield Asset Management in a deal worth about $4.6 billion. The electronics maker has also been dealing with the fallout of a 2015 accounting scandal that revealed systematic inflation of profits of more than JPY151 billion ($1.4 billion) over seven years.

Toshiba’s financial difficulties led it to sell its Nand flash memory unit Toshiba Memory Corporation (TMC), seeking to use the revenue from the sale to cover the losses at Westinghouse and avoid delisting from the Tokyo Stock Exchange. Last October shareholders approved the sale of TMC to a consortium led by Bain Capital Private Equity for JPY2 trillion.

Kurumatani expressed confidence in Toshiba's ability to overcome its difficulties. He added: “This company has a long and impressive history of creating new technologies and turning them into massive businesses, and I see my most important responsibility as reactivating this cultural DNA and bringing all management resources together to focus on reviving Toshiba.”

CVC appointed Kurumatani in May 2017. He previously held various positions at Sumitomo Mitsui Financial Group and its subsidiaries, most recently serving as deputy president and board director.

The private equity firm is currently investing its fourth pan-Asian fund, which closed at $3.5 billion in 2014. Its most recent deal in Japan was the purchase last December of a majority stake in massage chain operator Riraku. Two months earlier, Advantage Partners sold the company back to its founders at a valuation of about $300 million.

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