Nomura, Carlyle bid for Japan's Orion Breweries
Japanese investment bank Nomura and The Carlyle Group have made a JPY52.1 billion ($477 million) tender offer as part of a proposed management buyout of Japan-based beer maker Orion Breweries.
Nomura will bid via its private equity business, Nomura Capital Partners, which was set up in 2017 with a commitment of approximately JPY100 billion from the bank. Carlyle is participating through its third Japan fund, which closed at JPY119.5 billion in 2015. The acquiring entity, known as Ocean Holdings, is owned 51% by Nomura and 49% by Carlyle.
According to a statement, the investors are willing to pay JPY79,200 per share in a deal that would see them acquire up to 658,504 shares.
Orion will maintain its current management following settlement of the transaction in March, at which time Yoshio Kadekaru, the company's representative chairman, plans to make an investment in Ocean. Nomura will support the company through its financial services networks, while Carlyle will offer relevant insights from its global consumer industry portfolio.
Founded in 1957, Orion operates eight subsidiaries and three affiliated companies with a strong focus on beverages, including Orion-branded beer and a partnership with Japan's Asahi Breweries that includes rights to market the Asahi Super Dry brand. Separate business interests include the Hotel Royal Orion, the Hotel Orion Motobu Resort & Spa, and Orion Arashiyama Golf Club.
Carlyle organized its Japan buyout business in 2000 with a focus on companies looking to expand globally. Other investments from the firm's third Japan fund include foreign exchange trading services company MoneySquare, business software provider WingArc1st, industrial supplier Hitachi Metals Techno, and drugs manufacturer Sunsho Pharmaceutical.
Nomura previously made private equity investments through Nomura Principal Finance (NPF). The unit completed 18 deals worth a cumulative JPY280 billion between 2001 and 2008, generating an IRR of around 25%. NPF participated in two of the six largest buyout deals from the pre-global financial crisis boom period, including manufacturer Tsubaki Nakashima.
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