Chimney To Go Private Via MBO with Carlyle

Chimney Co., a midsize chain operator of Japanese-styled pubs announced that an investment firm of Carlyle Group will conduct a tender offer at 2,260 yen a share between Nov. 9 and Dec. 21. The tender offer price is a 37% premium over its six-month average. The goal is to acquire at least a 75% stake in Chimney and delist the company from the Tokyo Stock Exchange. The acquisition cost would be around 20.8 billion yen if all shared are acquired. This would be approximately equivalent to 4 x EBITDA based on the figure provided by Chimney's latest financial filing. Chimney's top shareholder Yonekyu Corp., a listed meat packer, has agreed to the terms of the offer. Chimney, whose pub sales have declined for 8 consecutive months under anemic consumer spending and intensifying price competition, hopes to expand such business as providing food services to public entities and restaurant chains with daytime hours to target medium-to long-term growth with help from Carlyle Group.