J-Star exits Japanese auto industry supplier

The size of the transaction was not disclosed. J-Star invested JPY1-2 billion ($9.4-18.7 million) in the business in 2013, working in conjunction with the Supply Chain Support Fund (SCSF), a vehicle backed by the Japan Auto Parts Industries Association and Development Bank of Japan (DBJ). One of the objectives was to explore expansion opportunities in the ASEAN region.

Tokai Trim has four production facilities in Japan and one in each of China, Vietnam, and Thailand. There is also a corporate headquarters in Suzuka and distribution management centers in Hong Kong and Thailand. The company cuts and sews seat covers for major domestic automotive manufacturers as well as producing a range of canvas products, including tent sheets.

When J-Star invested, Tokai Trim had sales of approximately JPY10 billion and an EBIDTA of around JPY300 million. Sales came to JPY12.3 billion in 2017, up from JPY11.1 billion the previous year.

The business has no direct relevance to Rembrandt’s core hotel and real estate offering, which comprises a portfolio of 10 hotels and assorted facilities management contracts. The company made the acquisition through a dedicated investment division that focuses on corporate succession and business revitalization.

"The group has provided hands-on support to numerous small and medium-sized enterprises with business succession needs. We will continue to support the growth [of Tokai Trim] by strengthening management and assisting in M&A," Rembrandt said in a statement.

J-Star invested in Tokai Trim through its second fund, which closed in 2011 with commitments of JPY20 billion. The firm is currently in the market with its fourth vehicle, which has a target of JPY42.5 billion. J-Star raised JPY32.5 billion for Fund III.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• North Asia
• Trade sale
• Industrials
• Japan
• J-Star
• automobiles
• manufacturing