ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Business deals

Carlyle to invest $970m in Japan testing equipment maker Rigaku

Private equity firm offers resources for expansion with eye toward bigger IPO

Carlyle set up a $2.5 billion Japan-focused fund, the largest of its kind, in 2020.   © Reuters

TOKYO -- U.S. private equity firm Carlyle Group will invest about 100 billion yen ($970 million) in Rigaku, a major Japanese manufacturer of analytical instruments, offering funding access and management know-how to pave the way for an initial public offering within the next few years.

A new holding company will be set up to buy out existing shareholders, split 80-20 between Carlyle and Rigaku President Hikaru Shimura. This investment, expected to come before the end of the fiscal year in March, will likely be the first by a $2.3 billion Japan-focused fund, the largest of its kind, set up by Carlyle last year.

The move comes amid a recent push into Japan by global private equity firms as governance reform gains momentum. Carlyle, which opened a Tokyo office in 2000, plans to pour more than $9 billion into Japanese businesses over the next three to five years.

Carlyle will send directors to Rigaku and encourage global expansion, including acquisitions, opening new sales channels and developing new products. Funds consider it less risky to invest in companies that have reached a certain scale, and businesses can expect to earn more from an IPO after expanding their operations.

Rigaku, established in 1951, is among the world's top manufacturers of equipment for X-ray analysis, and it sells instruments for the medical and semiconductor industries as well. The company reported about 44.1 billion yen in revenue for the fiscal year ended March 2020, with about 65% generated overseas.

Carlyle's previous investments in Japan have centered on midsize companies, such as Oyatsu, maker of the Baby Star snack brand.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more