Carlyle invests in Japan's GGC Group

No financial or ownership stake details have been disclosed, but an announcement from the PE firm confirmed the equity for the transaction came from the Carlyle Japan Partners III buyout fund. This vehicle's first investment was also in the food space and resulted in Carlyle taking a 51% stake in ramen snack company Oyatsu in a deal estimated to value more than JPY20 billion yen ($194 million).

The latest investment and partnership is expected to leverage Carlyle's expertise in the commodities space to expand GGC's already dominant position in Japan's fast-growing pre-cut vegetable market ahead of a potential overseas expansion.

"Bean sprouts are among the most popular items at supermarkets in Japan after milk and eggs, and have long been an essential ingredient in Japanese cuisine," Carlyle Japan managing director Kazuhiro Yamada said. "As the number-one bean sprout manufacturer in western Japan, GGC Group is well-positioned for further growth and expansion."

GGC is the owner of the best-selling bean sprout brand "Meisui Bijin" and attributes its strong market share to regional access to natural water resources, advanced production technologies and effective supply chain management. The company's current management, led by President and Representative Director Katsukiyo Mizumoto, will continue to run the business.

Carlyle's Japan buyout funds, which have made more than 20 investments in Japan, have a track record of supporting Japanese mid-cap companies' overseas business expansion, enhancing their operational efficiency and strengthening their management infrastructure. The firm closed its third Japan-focused fund last year at JPY119.5 billion ($1 billion), exceeding the target of JPY100 billion.

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• Topics
• North Asia
• Consumer
• Expansion
• The Carlyle Group
• Japan
• Agriculture