The Carlyle Group to Acquire Tsubaki Nakashima Co., Ltd.; Supporting Tsubaki Nakashima Overseas Expansion

Tokyo, Japan – Global alternative asset manager The Carlyle Group has reached final agreement to acquire 96.56% of outstanding shares of Tsubaki Nakashima Co., Ltd. (“Tsubaki Nakashima“) from Nomura Principal Finance Co., Ltd. (“NPF”). The transaction is expected to close by the end of March 2011. Other financial terms are not disclosed.

Headquartered in Nara, Japan, Tsubaki Nakashima is a global manufacturer of high quality bearing components, mainly precision balls. With its advanced engineering and production capabilities spanning across Japan, China, India, Eastern Europe, Taiwan and the U.S., Tsubaki Nakashima has established a large, steady clientele of global bearing manufacturers. Tsubaki Nakashima is highly focused on further expanding its global business operation to capture growing demand in the emerging markets and from the economic upturn among developed countries.

Mr. Tamotsu Adachi, Managing Director and Co-Head of Carlyle Japan Partners said, “Tsubaki Nakashima is absolutely essential to bearing manufacturing for the automotive and machinery industries. It has solid market positioning and advanced engineering capabilities, making it highly competitive in global markets. It is well placed to benefit from the global economic recovery and the fast emerging market growth. Tsubaki Nakashima represents a good investment opportunity for Carlyle to participate in the growth of a well-managed company that is led by President Mr. Kondo. Going forward, Carlyle will best leverage its global platform to support Tsubaki Nakashima and promote substantial growth in emerging markets to capture their full potential.”

Mr. Takanori Kondo, President of Tsubaki Nakashima, said “Tsubaki Nakashima supplies a diverse range of products to customers worldwide, with the aim of creating value through manufacturing and contributing to society. To serve the increasing market demands, we are aggressively expanding our global footprint and supply capacity, focusing on developing new products, new technologies, and new markets. We plan to leverage Carlyle’s global network to implement this growth plan.”

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Tsubaki Nakashima Co., Ltd.
Tsubaki Nakashima is one of the world’s leading specialized manufacturers of steel balls. Since its establishment in 1936, the Company has created systems that draw on its spherical surface processing technology to mass-produce a stable supply of high surface precision balls. The Company has built its customer base, mainly among bearing manufacturers in Japan and overseas.

The Company’s lines of business are its “precision products business”, which comprises the manufacturing of the previously mentioned steel balls as well as ball screws and ball ways, and its “air blower business”, which includes manufacturing of medium-sized to large fans and blowers based on its know-how accumulated over many years. The Company has developed global operations through business locations in Japan, North America, South America, Europe and the rest of Asia. www.tsubaki.com

About The Carlyle Group
The Carlyle Group is a global alternative asset manager with $97.7 billion of assets under management committed to 76 funds as of September 30, 2010. Carlyle invests across three asset classes - private equity, real estate and credit alternatives - in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. Since 1987, the firm has invested $64.7 billion of equity in 1,015 transactions. The Carlyle Group employs more than 900 people in 19 countries. As of June 30, 2009, in the aggregate, Carlyle portfolio companies have more than $84 billion in revenue and employ more than 398,000 people around the world. Web: www.carlyle.com;  Video: www.youtube.com/OneCarlyle

Media Contact:
Dorothy Lee
The Carlyle Group
Tel: +852 2878-5091
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