The Carlyle Group Announces the Initial Public Offering of Broadleaf Co. Ltd.
March 22, 2013
Broadleaf is positioned for continued growth and success as a public company
Tokyo, Japan – Global alternative asset manager The Carlyle Group (Japan co-representatives: Tamotsu Adachi/Kazuhiro Yamada; headquarters: Washington, D.C.; hereinafter Carlyle) today announced that its majority-owned company, Broadleaf Co. Ltd. (Tokyo Stock Exchange First Section, stock code 3673, headquarters Tokyo, Japan; President and CEO: Kenji Oyama) has gone public on March 22, 2013, with its shares trading on the first section of the Tokyo Stock Exchange.
Carlyle sold 16,480,000 (73% of the total number of shares outstanding) of its holdings in Broadleaf and allocated the remaining 2,813,000 shares (13% of the total outstanding) for an over-allotment. Including the over-allotment portion, Carlyle will sell all of its shareholdings. Carlyle Japan Partners II acquired Broadleaf in November 2009.
Broadleaf is one of the largest auto after-market software providers in Japan, providing IT solutions and services to maintenance and repair shops, body shops, dismantlers and parts distributors. With its proprietary IT systems, auto-part databases and network technologies, Broadleaf provides business applications for streamlining operations to 30,000 clients, helping them improve their operational efficiency and support their business development activities.
Since its establishment, Broadleaf has expanded its business as a subsidiary of the publicly traded company, ITX. Broadleaf became independent in November 2009 through a management buyout (“MBO“) supported by Carlyle. The purpose of MBO was to focus on the long-term growth strategy of the company, including business model transformation and overseas expansion, in order to cope with the drastic changes in the automotive industry following the global financial crisis. During the MBO period, Broadleaf worked closely with Carlyle to maximize the company’s business value by focusing on network-based transaction fee to drive revenue growth, strengthening its management and sales teams, introducing strategic products, and expanding into overseas markets. Having accomplished the goals of the MBO, Broadleaf has decided to go public and is well-positioned for the next stage of growth.
Kenji Oyama, President of Broadleaf, said, "Today, I am honored to announce the listing of Broadleaf on the first section of the Tokyo Stock Exchange. Since the MBO in November 2009, Broadleaf has received tremendous support from Carlyle. As a strategic partner with a long-term commitment, Carlyle has helped improve the company's business structure and develop a sustainable growth strategy. Over the years, we have successfully implemented fundamental strategic initiatives that are instrumental to the growth of the company such as business model changes, organizational reform and overseas expansion. We will continue to accelerate our business growth to meet the expectations of all stakeholders by providing unique IT services that contribute to IT-industrialization of the automobile-related industries."
Comment on the initial public offering, Tamotsu Adachi, managing director and Japan co-representative of Carlyle Japan LLC, said, "Since our investment in 2009, Carlyle has worked closely with Broadleaf to enhance its business model and expand its overseas operations. The mutual trust between Carlyle and Broadleaf, coupled with President Kenji Oyama’s strong leadership, and the efforts of its management team and all employees, have contributed to the successful transformation of the company. With quality products and solid industry position, Broadleaf is positioned for continued growth and will make substantial contribution to the society as a public company. "
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About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $170 billion of assets under management across 113 funds and 67 fund of funds vehicles as of December 31, 2012. Carlyle's purpose is to invest wisely and create value on behalf of our investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and 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 1,400 people in 33 offices across six continents. Web: www.carlyle.com
About Broadleaf Co. Ltd.
Under the management principle of "gratitude and happiness," Broadleaf uses information technologies to support customers' business creation and provides IT services to become a business partner that flourishes along with customers. Broadleaf promotes industrial structure reform with IT platform services mainly for such markets as the auto after-market. Using its core database, customer base, data, and network technologies, Broadleaf provides business applications for streamlining operations to various kinds of businesses, such as ones related to the auto after-market (maintenance and repair shops, body shops, dismantlers, and parts distributors), mobile phone distributors, and travel-related businesses. For more information, please visit the Group's website: www.broadleaf.co.jp.
The Carlyle Group Acquires Automotive Software Provider Broadleaf Co., Ltd.; Carlyle's Global Network Will Help Broadleaf Expand Overseas
October 26, 2009
Tokyo, Japan - Global private equity firm The Carlyle Group today announced that it has agreed to acquire 100% of the outstanding shares of Broadleaf Co., Ltd. (Broadleaf), one of the largest auto after-market software providers to the repair & inspection industry in Japan. Broadleaf is currently owned by Olympus Corporation and ITX Corporation. The transaction is scheduled to close on November 13, 2009. Further financial details were not disclosed.
Since its establishment in 2005, Broadleaf has expanded its business as a subsidiary of the publicly listed ITX. After reaching agreement with current shareholders, Broadleaf has decided to become independent through a management buyout (MBO). By leveraging Carlyle's global network, Broadleaf aims to achieve further growth through accelerating its overseas operations.
Mr. Masao Hirano, Managing Director and Co-Head of Carlyle Japan Partners, said, “We are impressed with Broadleaf's quality products and solid industry position and have great confidence in the leadership of Broadleaf President Kenji Oyama and his management team. Carlyle's global network will help Broadleaf realize a growth surge as a comprehensive solutions provider for the supply chains of companies in automobile after-market industries.”
Mr. Kenji Oyama, President and CEO of Broadleaf, said, “Broadleaf's database and systems are crucial for our customers' frontline operations. We have grown with our customers through our corporate philosophy of ‘gratitude and joy.’ As the automobile industry is undergoing considerable changes, we believe it is necessary to modify Broadleaf's business model by partnering with The Carlyle Group, which makes investments with a medium-to-long term perspective. By becoming independent through an MBO, Broadleaf increases business flexibility and speed of its decision making to better serve our customers.”
Mr. Oyama added, “Looking ahead with our new shareholder, we believe the new business model will increase the convenience and value-added for our customers and support their business development activities. Moreover, we will strive to grow with our customers globally and live up to the meaning of our corporate name, “Broadleaf,” by spreading our branches around the world.”
Broadleaf increases the operational efficiency of automobile-related after-market industries. Broadleaf's proprietary database and system software packages manage the handling of estimates and work orders for maintenance and repair shops. It also supplies component distribution and trading industries with marketing administration software and other operational support software packages. In addition, Broadleaf offers administrative system packages related to mobile phone sales, travel, and machine tools as well as operates a cooperative recycling component inventory network for automobiles.
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Broadleaf Co., Ltd.
Broadleaf develops and markets the Super Frontman automobile maintenance system and other system software packages for diverse kinds of automotive-related business operations, including administrative system packages that handle inventory control, customer management, estimate/sales/billing administration, police vehicle management and other administrative processes. These products are provided to companies in various automobile after-market business fields, such as maintenance and repair shops, body shops, used car dealers, dismantlers, and component distributors. Further leveraging its system software packages know-how, Broadleaf develops and markets system software packages and databases for other kinds of customers—including companies associated with travel, machine tools, and mobile phone sales as well as for major IT-related companies—and provides related support services. In addition, it engages in IT solutions operations encompassing the development, sales, operation, and support of diverse next-generation systems associated with the previously mentioned system software packages. Specifically, it operates the Parts Station NET cooperative recycled automobile component inventory network, which focuses primarily on used components, the CarPod.jp comprehensive automobile search site, which helps people confidently undertake automobile purchases as well as efficiently arrange automobile sales, and other services. For more information, please visit the Group's website: www.broadleaf.co.jp.