Carlyle Announces Sale of SENQCIA to Lone Star Japan
Tokyo, Japan, March 31, 2022 – Global investment firm, Carlyle (NASDAQ: CG) today announced that it has sold its ownership in SENQCIA Corporation (“SENQCIA”), a leading Japanese domestic construction materials company that provides innovative, earthquake-resistant products and solutions for social infrastructure, to an affiliate company of Lone Star Funds in Japan. Terms of the transaction were not disclosed.
Carlyle acquired SENQCIA (formerly known as Hitachi Metals Techno) in March 2015 in a take-private and as part of a non-core divestment by Hitachi Group, through a tender offer by CK Holdings Co. Ltd., an entity established by an affiliate of the Carlyle Japan Partners (CJP) fund.
SENQCIA currently provides specially designed earthquake-resistant structural building materials and solution systems including seismic-isolation floor systems, seismic-resistant steel structures and seismic-reinforcement systems that are used in many of Japan's landmark buildings.
Following the acquisition of SENQCIA, Carlyle partnered with the company’s management team to transform the company and enable it to achieve long-term sustainable value and independence from the Hitachi Group. Leveraging its deep manufacturing and industrial sector experience, Carlyle helped to implement organizational changes to strengthen SENQCIA’s management capabilities and create a more flexible organizational structure for streamlining and accelerating overall decision-making processes. Carlyle also worked with SENQCIA to further expand its market share through the implementation of pricing strategies for existing products as well as helped establish a new business offering of earthquake-resistant products for existing infrastructure. Carlyle also worked with SENQCIA to divest its industrial chain business to help transform the company into a leading building and construction materials specialist.
Under Carlyle’s ownership, SENQCIA’s revenue and EBITDA have increased on a compound annual growth rate (CAGR) of approximately 7% and 15%, respectively, from FY2015 through to FY2021 (forecast) ending March 31, 2022.
Hiroyuki Otsuka, Managing Director and Deputy Head of the Carlyle Japan Advisory Team, said “We have been delighted to partner with SENQCIA and commend the management and employees of the company for achieving independence from the Hitachi Group and on SENQCIA’s significant growth over the past seven years. We are proud to have supported and played an active role in the business transformation of the company, and look forward to seeing SENQCIA continue to be a market leader in the building materials industry and contribute to social infrastructure innovation in earthquake-prone Japan.”
Carlyle has invested more than 420 billion yen in 33 investments in Japan since entering the market in 2000 and has extensive experience partnering with Japanese companies to drive business growth and value creation. Carlyle focuses on investments in the energy, healthcare, technology, manufacturing, industrial and infrastructure sectors in Japan. Carlyle’s buyout funds in Japan have a well-established track record in investing in the manufacturing and industrial sector, with investments including Rigaku Corporation, Tsubaki Nakashima Co., Ltd, CxS Corporation, Kito Corporation, among others. Globally, Carlyle has invested more than US$24 billion of equity in deals in the industrial sector as of December 31, 2021.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. served as financial advisor and Nishimura & Asahi served as legal advisor to Carlyle for the transaction.
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Investment Solutions. With $301 billion of assets under management as of December 31, 2021, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs nearly 1,850 people in 26 offices across five continents. Further information is available at carlyle.com. Follow Carlyle on Twitter @OneCarlyle.
About SENQCIA Corporation
SENQCIA Corporation is a company specialized in manufacturing, developing and providing building and construction materials and solutions. The company develops Raised Floor Systems, HIBASE Methods, HIRING Methods and vibration dampers. It also has a highly valuable new business offering that produces earthquake-resistant products for existing infrastructure or properties. SENQCIA is based in Tokyo, Japan.
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