CITIC Capital sponsors buyout of Japanese tableware maker

The private equity arm of CITIC Capital, which is part of China’s largest financial group, is leading the buyout of Narumi China Corp, a Japanese branded tableware company.

CITIC Capital Partners, the private equity arm of CITIC Capital Holdings, a China-focused investment management and advisory firm, will lead the management buyout of Narumi China Corp, a Japanese tableware brand.

Together with the current management, CITIC will purchase a 90 percent stake in Narumi from Sumitomo Metal Industries. Sumitomo will retain a 10 percent stake after the transaction, according to a statement. No financial details were disclosed.

One of the attractions brought by the private equity manager is its link to the expansive network of CITIC Group, according to a statement by Narumi. CITIC intends to play an active role in helping Narumi access the imported porcelain market in China, which it said is expanding at around 35 percent per annum.

Founded in Japan in 1946, Narumi manufactures and distributes mid to high-end tableware and heat resistant glass tops or electric induction heating and gas stoves. It intends to expand operations to China, Southeast Asia, India and the Middle East.

Narumi will be the third Japanese company CITIC has bought out. CITIC co-sponsored the MBO of Pokka Corporation in 2005, and supported the buyout of a 45 percent stake in Shinwa Corporation in 2004.

Founded in 2003, CITIC Capital Partners manages three separate funds totalling $250 million for three markets: Japan, China and the US.  It is also in the process of raising a new fund for China.