Nomura Holding and Carlyle to acquire Japan’s Orion Breweries

Nomura Holdings and US investment company, The Carlyle Group, will jointly acquire a majority stake in Japan’s fifth-largest beer producer, the Okinawa-based Orion Breweries, for an undisclosed amount it has been announced.

According to a report by Japanese media outlet Nikkei Asian Review, the acquisition is estimated to cost billions of yen.

The deal is expected to expand sales channels of the Japanese beer brand, especially in the US and other parts of Asia.

Founded in 1957, Okinawa-based Orion ranks as Japan’s fifth biggest beer producer, with a 0.9% market share in the country, according to the Brewers Association of Japan. The company posted ¥28.3 billion (US$260 million) in group sales, and ¥2.3 billion in net profit in the year through March last year, according to the news report.

Asahi Breweries, the biggest beer producer in Japan, at the moment is still the biggest shareholder with a 10% stake, and will continue to retain the shares and be involved in product development and sales. Asahi has just purchased the entire beer business and distribution business from the UK brewer Fuller’s for £250 million.

The Carlyle Group previously purchased Australian wine group, Accolade Wines, and is apparently in talks with Spain’s Cava producer Codorníu Raventós Group for a deal.

Japan’s overall beer shipments in 2018 has fallen to record low, as dbHK previously reported.