The Carlyle Group Invests in GGC Group through a Strategic Business and Capital Alliance

Partnership Supports Expansion of No. 1 Bean Sprout Manufacturer in Western Japan

Tokyo, Japan – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has invested in GGC Group, the owner of Kyushu GGC Ltd. (Representative Director: Katsukiyo Mizumoto, head office: Oita Prefecture) and the owner of the best-selling bean sprout brand “Meisui Bijin”, through a strategic business and capital alliance. Equity for the transaction came from Carlyle Japan Partners III, L.P., an investment fund advised by Carlyle Japan L.L.C.

Headquartered in a region with one of the 100 best natural water resources in Japan, Kyushu GGC, using advanced production technologies and a locally-rooted supply chain, has a top share in the bean sprout market in western Japan. Its main brand “Meisui Bijin” is the best-selling bean sprout brand in Japan and is strongly favored by consumers for its superior texture and good quality.

Through this strategic business alliance and capital investment, Carlyle will leverage its deep expertise and experience in the commodities sector to help GGC Group expand its presence in the fast-growing pre-cut vegetable market in Japan and build a strong business operation in preparation for overseas expansion. The current management members of GGC Group, led by President and Representative Director Mr. Katsukiyo Mizumoto, will continue to run the business.

Mr. Katsukiyo Mizumoto said, “Having established a strong market position in western Japan, we are looking to further grow and develop our pre-cut vegetable business in Japan and expand our footprint globally. We are impressed with Carlyle’s global expertise and network and are confident that it will provide the support we need for business expansion. Our alliance with Carlyle will help us accelerate the speed of our development and enhance our enterprise value. We are determined to, through these efforts, make great contributions to the communities by providing safe and quality food to more households.”

Kazuhiro Yamada, Managing Director of Carlyle Japan L.L.C., said, “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. With natural water resources and advanced production technologies and supply chain management, GGC Group is known for manufacturing safe and high-quality bean sprouts. As the No. 1 bean sprout manufacturer in western Japan, GGC Group is well-positioned for further growth and expansion. We are pleased to form this partnership, which we believe will enable GGC Group to strengthen its presence in the fast-growing pre-cut vegetable market in Japan and expand its business into overseas markets.”

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.

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Overview of GGC Group
GGC Group Kabushiki Kaisha
Establishment: April 27, 2011
Representative: Katsukiyo Mizumoto, Representative Director
Head Office: 205, Yakage Town, Oda District, Okayama
Description of Business: Production and distribution of bean sprouts and mixed bean sprouts
Key subsidiaries: Global Green Corporation: procurement of mung beans, distribution of bean sprouts and mixed ban sprouts; established on February 8, 1990
Kyushu GGC: Production of bean sprouts and mixed bean sprouts; established on March 14, 1990

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $183 billion of assets under management across 126 funds and 160 fund of fund vehicles as of December 31, 2015. Carlyle's purpose is to invest wisely and create value. Carlyle invests across four segments - Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds Solutions - in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,700 people in 36 offices across six continents.

Carlyle is the only global alternative asset manager to establish a dedicated Japan buyout fund denominated in yen. 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. In September 2015, Carlyle announced that it raised ¥119.5 billion (approximately $1.0 billion) for its third Japanese buyout fund, Carlyle Japan Partners III.

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