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Carlyle Weighs Sale of Baby Star Noodle Snack Maker Oyatsu

Carlyle Weighs Sale of Baby Star Noodle Snack Maker Oyatsu

(Bloomberg) -- Carlyle Group Inc. is weighing a sale of its controlling stake in Japanese snack maker Oyatsu Co., people with knowledge of the matter said, paving the way to exit an investment the buyout firm made in 2014.

The private equity firm is seeking an adviser to oversee the potential sale of the Baby Star noodle snack maker and sound out prospective buyers, the people said. A disposal of the snack maker could fetch $300 million to $400 million, said the people, who asked not to be identified as the information is private.

Founded in 1948, the closely-held company started as a noodle maker and began selling Baby Star snack in 1959. Oyatsu, which means “snack” in Japanese, generated the bulk of its revenue from its flagship brand, which is made from the byproducts of manufacturing ramen noodles. Carlyle took control in 2014 for an undisclosed amount.

Oyatsu, based in Tsu in western Japan’s Mie prefecture, posted 20.7 billion yen ($193 million) in sales in the fiscal year ended July 2019, according to its website. The company has about 400 employees.

Announced food and beverages acquisitions involving Japanese companies jumped to about $17.5 billion in the past 12 months, led by Asahi Group Holdings Ltd.’s $11.3 billion purchase of Anheuser Busch InBev NV’s Australian business, data compiled by Bloomberg shows.

Selling Oyatsu would be Carlyle’s second exit from a Japanese investment in about a year after agreeing to sell its majority stake in bean sprouts producer Meisui Bijin Factory Co.

Deliberations are at an early stage and the buyout firm could choose to keep its investment, the people said. Representatives for Carlyle and Oyatsu declined to comment.

--With assistance from Cathy Chan.

To contact the reporters on this story: Takako Taniguchi in Tokyo at ttaniguchi4@bloomberg.net;Vinicy Chan in Hong Kong at vchan91@bloomberg.net

To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Robert Fenner

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