Carlyle makes $248m takeover bid for Hitachi metals unit

According to a release, Carlyle - which is offering to pay JPY1,600 a share - will make the investment via CK Holdings, an investment vehicle set up by Carlyle Japan Partners and Mitsubishi UFG Bank, which will help finance the transaction.

Hitachi Metals Techno is a 65%-owned subsidiary of Hitachi Metals, set up by its parent in 1956. The company manufacturers specialized metal products including steel raised flooring, chains and sprockets, solar and insulation panels, and construction components.

Hitachi Metals Techno distributes its products via the parent organisation, however the company also has its own subsidiary - Hitachi Maxco - which handles North American sales.

The company reported net sales of JPY18.9 billion for the nine-month period ended December, against JPY20.1 billion for the same period last year. Ordinary income cam to JPY2.3 billion for the same period, up from JPY2.1 billion the previous year.

Shares in the company started trading at JPY1,197 this morning, down 2% from the previous day's open in a weak Tokyo market.

Carlyle is currently investing out of its third Japan fund, for which it is seeking to raise $1 billion. The fund was launched in early 2013 and passed the halfway point in October last year.

If the deal goes through it will be Carlyle's third deal from the new fund. It made its first investment last May, acquiring a controlling stake in Oyatsu Company, the manufacturer of Baby-Star ramen snacks. This was followed by an agreement to buy Sunsho Pharmaceutical, a contract manufacturer in the health and nutrition industry, in June.

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• Topics
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• Buyouts
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• The Carlyle Group
• manufacturing