The Carlyle Group Sells Asahi Security to Toyota Industries Corporation

Tokyo, Japan – Global private equity firm The Carlyle Group and Toyota Industries Corporation today announced that Toyota Industries has agreed to acquire Carlyle’s entire stake in Asahi Security Co. Ltd., a provider of cash management outsourcing services. Carlyle and all other shareholders will sell 100 percent of their shares for ¥19.5 billion. Carlyle Japan Partners, a ¥50 billion investment fund, made this investment in February 2002. The transaction is expected to close in March 2005.

Asahi Security provides comprehensive cash management outsourcing services—armored cars, cash collection, processing and delivery, and electronic security—to customers operating nationwide, including retailers, service businesses and transportation operators. Primary institutional customers include Japanese Postal Offices, Central Japan Railway Company, KEIO Electric Railway, Daiei Group and AEON Group.

Carlyle acquired Asahi Security from Daiei Group through a management buyout (MBO). Since then, Carlyle and company management have aggressively invested in and developed new business centers and acquired new customers. In the three years that Carlyle has owned the company, Asahi Security has built or expanded several business centers, increased the number of employees from 2,000 to 2,600 and doubled the number of customers, focusing mainly on business clients. Sales are forecasted to grow 31 percent to ¥21.5 billion by the year ending February 2005.

Carlyle Founding Partner and Managing Director David M. Rubenstein said, "This investment into Asahi Security was Carlyle’s first buyout in Japan. We believe this transaction raised the corporate value of Asahi Security and demonstrated both in Japan and abroad that private equity funds can successfully contribute to new business developments. Asahi Security’s management team agrees that this is a long-term growth opportunity for the company, which has a valuable role in the Japanese economy. By aggressively pursuing management buyouts going forward, Carlyle will help energize the Japanese economy."

Asahi Security has been preparing since last summer to conduct an initial public offering to further expand its business. As a result of a proposal from Toyota Industries through its financial advisor concerning a potential business alliance, Carlyle decided to sell its stake in Asahi Security to the firm.

# # #