TPG to exit stake in Japanese toy maker

The company will acquire TPG's equity holding of 4.45 million shares - or a 4.62% stake - as part of a wider buyback of 9.7 million shares, or a 10.3% stake. Tomy has allocated up to JPY6.7 billion ($55.9 million) for the transactions. A further JPY7 billion will be used to take out TPG's bonds.

Tomy cited changing business conditions and a desire to improve corporate and shareholder value as reasons for the move, according to a regulatory filing. The company also highlighted the contribution TPG has made to the business, particularly in the acquisition of US toymaker RC2 and in setting up sourcing channels in Vietnam to boost cost competitiveness and ease reliance on Chinese manufacturers.

TPG acquired a 14.38% interest in Tomy for JPY9.41 billion (then $80 million) in March 2007. Two years later, the private equity firm sold a 10.83% stake in Marunouchi Capital, which invested JPY8.42 billion for a 15% stake in Tomy.

The company was founded by Eiichiro Tomiyama in 1924 as Tomiyama Toy Seisakusho and initially specialized in making toy airplanes. It now sells a wide variety of toys, games and childcare products to a global customer base. In 2006 the company merged with long-time rival Takara, best known for the Transformers line of toys.

Tomy posted sales of JPY154.8 billion for the 12 months ended March 2014, up 41.3% year-on-year. Net income came to JPY232 million compared to a loss of JPY7.17 billion in 2013.

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• Topics
• Exits
• Consumer
• North Asia
• Japan
• TPG Capital
• Exit
• Consumer
• Buyback