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J-Star, supply chain fund back Tokai Trim

  • Andrew Woodman
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Japanese mid-cap buyout firm J-Star has joined the Supply Chain Support Fund (SCSF) - a vehicle backed Japan Auto Parts Industries Association and Development Bank of Japan (DBJ) - in investing around JPY1-2billion ($10-20 million) in auto parts firm Tokai Trim.

J-Star has committed around 60% of the capital with SCSF putting in the rest. The deal is the first investment by SCSF, which also counts Sumitomo Mitsu Banking Corp. (SMBC) and Mizuho Bank among its LPs.

Headquartered in Mie prefecture, Tokai Trim has six bases across four countries - Japan, China, Vietnam and Thailand - manufacturing seat covers for cars and motorcycles. The company has sales of approximately JPY10 billion and an EBIDTA of around JPY300 million.

A leader in the seat cover manufacturing market, Tokai Trim claims to differ from its peers in that it doesn't rely on specific car makers but has business with various clients.

"The value-add will come though expanding overseas opportunities in the ASEAN region especially in emerging countries," said Kenichi Ishikawa, a principal with J-Star. "At the same time, Tokai Trim will decentralize supply and demand locations to strengthen its stability as a company."

J-Star made its investment through J-Star Fund No.2, a JPY20 billion vehicle that launched in April 2011.

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