Tokio Marine exits Japanese machinery parts maker

The private equity firm acquired a 60% stake in the business in 2014 with Kohei Tsuruoka, a descendant of the company founder, retaining 40%. Wakita & Co. said in a filing that it would take an 80% interest in the business for an undisclosed sum.

Established in 1957 and now based in Osaka, Tonichi Kosan produces parts for engines, motors, undercarriages, and hydraulics, dealing with more than 5,000 suppliers. It also has a smaller export business that ships a range of Japanese-made goods, from food and tableware to beauty products and clothing. Wakita & Co. sees the acquisition as a business expansion opportunity.

Tonichi Kosan posted sales of JPY7.14 billion ($67 million) for the 12 months ended March 2017, roughly in line with the previous year. Over the same period, net income declined from JPY163 million to JPY160 million.

Tokio Marine Capital closed its fifth Japan mid-market fund last year at JPY51.7 billion on the back of strong support from domestic LPs, notably regional banks. The Tonichi Kosan investment came from Fund IV, which closed at JPY23.3 billion in 2013. Other recent exit activity includes the sale of furniture manufacturer Asplund and an IPO for market research business MS&Consulting.

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• Topics
• North Asia
• Trade sale
• Industrials
• Japan
• Tokio Marine Capital
• Exit
• manufacturing