Kito Corporation Debuts on Tokyo Stock Exchange; Returns to Public Market after Turnaround under Private Equity Ownership

Tokyo, Japan – Global private equity firm The Carlyle Group announced that its majority-owned company, Kito Corporation (Tokyo Stock Exchange Section 1, stock code: 6409), has today re-listed and traded publicly after a successful initial share offering in Japan. Priced at the top of the indicative range, a total of 42,724 shares at JPY 400,000 (or approximately US$ 3,333) each, representing 32.12% of Kito’s outstanding shares, were offered to domestic retail and international institutional (including Japanese) investors. Along with the offering is an over-allotment option of 7,153 shares, or 5.38% of outstanding shares of Kito.

Kito’s successful re-listing showcases a complete transformation of a once Jasdaq-listed company entrapped in Japan’s prolonged economic slump.  The company was taken private by Carlyle in a management-led buyout in September 2003. Over the last four fiscal years, Kito engineered an impressive surge of nearly 50% in sales revenue and more than four times in operating income. The aggressive overseas expansion and financial strengthening have cemented Kito’s global leadership position – the largest industrial hoist and crane manufacturer in Japan and China as well as the second largest in the U.S. by market share.  From its headquarters in Yamanashi Prefecture in Japan, Kito runs a global operation across Asia, North America, Europe, and emerging markets. It manages a comprehensive production and distribution process from product development and manufacturing to marketing and after-sales support.

Yoshio Kito, Kito’s President and CEO, said, “This stellar performance reflects a series of strategic decisions and changes Carlyle and the management introduced. To enhance the company’s long-term growth capabilities, we together created a framework for quality and quick decision-making. Such change facilitated our swift overseas expansion, a new, efficient Toyota production system, a management and staff incentive program, as well as the sale of an unprofitable logistics system business.”

As Kito is now back on a vibrant growth track, its management and Carlyle believe the re-listing would allow Kito to access the public market for future funding needs. And the public shareholders have an opportunity to enjoy its future prospects.

Mr. Kito said, “We thank our business partners and associates for their continued trust and support since Kito went private in 2003, as well as the understanding and support of our former shareholders.  Carlyle has been a supportive strategic investor for our medium and long-term growth initiatives based on mutual trust and shared vision. This partnership enabled us to maximize Kito’s strengths and brand equity to realize ambitious goals. Looking ahead, we will expand our globalization efforts to drive further growth and meet investors’ expectation.

Tamotsu Adachi, Carlyle’s Managing Director and Representative for Japan, said, “Kito is a great company with unique culture, excellent products, technology and brand positioning. Since the investment, Carlyle has developed an exceptionally solid relationship and trust with the management and employees that allowed bold, revitalization measures implemented. The results today reflect the extraordinary efforts of the management and employees. Kito is well poised for the next stage of growth globally, and Carlyle will continue to support Kito as a shareholder.”   

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About Kito Corporation
Established in 1932, Kito Corporation is a global company that develops, manufactures, markets and provides after-sales service for high-quality hoists and cranes in Japan, North America, China, Europe and emerging markets. Kito has an overwhelming market share for its main products in Japan.  It is expanding rapidly in many overseas markets including North America and China. Kito’s corporate goal is to become the No. 1 global hoist manufacturer building on an already strong brand and continued strengthening of its global competitiveness. For more information, please visit the company’s website at: www.kito.co.jp.

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