PRESS RELEASE

The Carlyle Group to Sell Qualicaps to Mitsubishi Chemical Holdings

Mon, 24 December 2012
2012-083

The Carlyle Group to Sell Qualicaps to Mitsubishi Chemical Holdings

Qualicaps has transformed into a global healthcare provider and increased revenue by more than 50% during Carlyle’s ownership

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 it has agreed to sell its entire shareholdings in Qualicaps (Nara, Japan, CEO Bernd Brust) to Mitsubishi Chemical Holdings, a Japanese Holding Company mainly operates the leading Chemical and Healthcare businesses (Tokyo, Japan, CEO: Yoshimitsu Kobayashi; hereinafter Mitsubishi Chemical). Further details of the transaction were not disclosed. The transaction is subject to regulatory approvals and is expected to close in March 2013.

Qualicaps is a global company that partners primarily with pharmaceutical companies to provide empty two-piece hard capsules and pharmaceutical processing equipment. The Company manufactures and markets the highest quality hard gelatin capsules and non-gelatin cellulose based capsules (“Quali-V”), the world's first pharmaceutical grade, animal origin free capsule, in key global pharmaceutical and nutritional markets.  The Qualicaps Group is the largest provider of pharmaceutical capsules in Japan and is the second largest in the global high quality capsule markets including North America and Europe.

Carlyle acquired Qualicaps, formerly known as Shionogi Qualicaps, from Shionogi & Co., Ltd in October 2005, and focused on transforming the Company’s business through setting up global management infrastructure, expanding manufacturing capability, pursuing operational excellence and implementing global marketing strategy. With highly talented management resources brought and significant investment made in Quali-V capacity, Carlyle supported the Company to become a global healthcare supplier resulting in substantial, above market growth.

Bernd Brust, CEO of Qualicaps, said, “We are delighted to have partnered with Carlyle, which has supported Qualicaps' global rebrand and transformation into an independent, fast-growing and highly profitable business. During Carlyle’s ownership, our revenue and EBITDA increased by more than 50% and 120% respectively through development of Quali-V capsules and expansion into new markets and product segments. Carlyle’s sector expertise and global platform have been invaluable to the company and fundamental to the growth and success we have enjoyed. Qualicaps has come a long way in the last few years, which would not have been possible without the strong engagement of our shareholders, the board and all the Qualicaps employees. We believe joining Mitsubishi Chemical Holdings Group will enable us to further expand our business, creating substantial synergies with Mitsubishi Chemical's healthcare business.”

Takaomi Tomioka, Managing Director at The Carlyle Group said, “Qualicaps is an excellent example of Carlyle’s global value creation. In 2005, we had the vision to create one of the world's largest pharmaceutical capsule providers with a truly integrated global management platform.  Over the past seven years, we have supported Qualicaps in various aspects such as building a strong management team, improving manufacturing quality, and executing strategic add-on acquisitions.  Qualicaps has been recognized as a business partner by global pharmaceutical giants and has delivered outstanding growth. We are proud to have supported Bernd Brust and his team for its accomplishments. Mitsubishi Chemical is an excellent strategic partner for Qualicaps and this transaction is an exciting opportunity to ensure the business continues to maximize its full global potential, contributing to further globalization of the Japanese blue-chip company such as Mitsubishi Chemical.”

Carlyle was advised by UBS Investment Bank and GCA.Savvian.

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Notes to editors

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with approximately $157 billion of assets under management in 101 funds and 64 fund of fund vehicles as of September 30, 2012. Carlyle's purpose is to invest wisely and create value. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds 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 1,300 people in 32 offices across six continents. [www.Carlyle.com]

About Qualicaps
Qualicaps is a global company that partners primarily with pharmaceutical companies to provide empty two-piece hard capsules and pharmaceutical processing equipment. The Company is the world’s second largest provider of Hard Capsules to the global pharmaceutical industry with over 115 years of experience in the capsule business. Through its seven facilities in Europe, Japan and North America, the Company’s global production capabilities provide the capacity, consistency and reliability of supply that is demanded by the global pharmaceutical industry, bringing its clients to market faster and more reliably to improve human health. The company was founded in 1965 and currently employs 1,000 individuals around the world. [www. Qualicaps.com]

About Mitsubishi Chemical Holdings
At the Mitsubishi Chemical Holdings Group, we serve our customers by using our chemistry-based technology platforms for the development of a wide range of technologies and products in the fields of performance products, healthcare, and industrial materials. Under the Group philosophy: “Good Chemistry for Tomorrow”, we established a new concept, KAITEKI which encompasses sustainability, health, and comfort. We aim to realize a truly sustainable state of comfort, not only for individuals but for society and the earth as a whole, through providing our technologies and products. As the Mitsubishi Chemical Holdings Group, we posted net sales of about ¥3,200 billion in fiscal year ended March 2012 and had more than 54,000 employees as of the end of the year. Further information about Mitsubishi Chemical Holdings is available on our websites: www.mitsubishichem-hd.co.jp/english/

Contact:
Public relations agent: Ogilvy Public Relations Worldwide (Japan) K.K.
Contact persons: Yuzo Tomonaga/Kozo Uchida
Tel03 (5793) 238523762380
E-mailCarlylePress.Tokyo@ogilvy.com

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