Carlyle sells Japan construction materials supplier to Lone Star

The private equity firm bought Senqcia in 2015 through a JPY 29.3bn (USD 248m) take-private that saw majority owner Hitachi Metals cede its 65% stake. Last year, Hitachi Metals – which is controlled by Hitachi – agreed to a JPY 816.8bn acquisition by a consortium comprising Bain Capital, Japan Industrial Partners, and Japan Industrial Solutions.

Senqcia produces earthquake-resistant structural building materials and solution systems including seismic-isolation floor systems, seismic-resistant steel structures, and seismic-reinforcement systems. They feature in many of Japan's landmark buildings, according to a statement.

Carlyle claims to have helped the company create a more flexible organisational structure to streamline decision making and expand its market share by revising pricing strategies and establishing a new business offering of earthquake-resistant products for existing infrastructure. Senqcia also divested non-core business lines to become a construction materials specialist.

During the holding period, the company saw compound annual growth in revenue and EBITDA of approximately 7% and 15%, respectively.

Carlyle is currently deploying its fourth Japan buyout fund, which closed on JPY 258bn in 2020. The firm has invested more than JPY 420bn across 33 deals in Japan since 2000. It focuses on opportunities in energy, healthcare, technology, manufacturing, industrials, and infrastructure.

Lone Star, which has raised USD 85bn across 22 funds since 1995, has substantial exposure to Japan. Earlier this year, it acquired Ooedo Onsen Monogatari Resorts & Hotels, a Japan-based traditional inn and hot spring chain operator, from Bain.

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• Topics
• North Asia
• Industrials
• Trade sale
• Buyouts
• Japan
• manufacturing
• The Carlyle Group
• Lone Star Funds