Advantage Partners has agreed to acquire LION SPECIALTY CHEMICALS CO., LTD. and its subsidiary PT. Ipposha Indonesia from Lion Corporation

LION SPECIALTY CHEMICALS CO., LTD.

Lion Specialty Chemicals (LSC) is a functional chemicals manufacturer with a broad portfolio centered on surfactants, conductive carbon and polymer rubber additives, providing niche, high-value-added products across diverse sectors including electronics, mobility and life chemicals. With over 100 years of history since Ipposha Oil Industries Co., Ltd. was founded, the company has strong technological capabilities in nitrogen derivatives, carbon-related technologies and polymer science, and holds multiple products in growth-oriented areas such as automotive rubber anti-tack agents and conductive carbon for electronics.

The Deal

Advantage Partners, a leading Japanese private equity firm, is primarily focused on buyout investments in Japan and across Asia. The firm has extensive experience supporting complex carve-outs from large corporations, as well as a strong track record of investing in manufacturing companies. LSC, together with its Indonesian subsidiary, PT. Ipposha Indonesia (IPI), is highly complementary to Advantage Partners’ portfolio and investment approach, given its position as a functional chemicals manufacturer providing niche, value-enhanced products with advanced technologies and strong exposure to high-growth segments.

Lincoln International served as the exclusive financial advisor to Advantage Partners, leveraging its deep expertise in advising on complex transactions. In this transaction, funds advised by Advantage Partners have agreed to acquire the shares of LSC and IPI from Lion Corporation (Lion). Through this divestiture, Lion aims to enhance its business portfolio as part of its structural reform initiatives, reflecting the different success factors of these B2B businesses compared to its consumer goods operations. Under Advantage Partners and through the effective use of external resources, LSC and IPI are well-positioned to execute their growth strategies, enabling greater focus on priority areas and accelerating business development.

Our Perspective

Kensuke Nakatsuka, Lincoln International Managing Director and Deputy Head of Japan, commented, “It was a privilege to work with Advantage Partners on this transaction. This serves as further evidence of the current mergers and acquisitions theme in Japan, strategic business portfolio reviews by large corporations and the surging role of private equity in carve-out transactions. Advantage Partners’ investment is an excellent fit to accelerate LSC’s growth and further strengthen the value proposition to its customers. This deal also highlights Lincoln’s proven expertise in advising financial sponsors on complex deals that demand exceptional agility and deal execution capabilities.”

Lion Corporation

Founded in 1891, Lion Corporation is a Japanese multinational manufacturer of consumer goods and chemical products, with a strong focus on oral care, personal care and home care. The company has built a well-established portfolio of trusted brands and advanced technologies, supporting its long-standing presence in both domestic and international markets. In addition to its consumer business, Lion operates a chemicals segment that develops high-value-added materials for a variety of industrial applications. Headquartered in Tokyo, Lion maintains a broad business platform across Asia.

Advantage Partners, LLP

In 1997, Advantage Partners established Japan’s first private equity fund and has since executed more than 100 investments, with cumulative assets under management exceeding JPY 600 billion. The firm invests through multiple strategies, including Japan Buyout, Asia Buyout, Private Solutions (private structured investments in listed companies) and Renewable Energy & Sustainability, and across a broad range of sectors such as information technology, electronic devices and components, food and consumer products, specialty retail and general manufacturing. Advantage Partners operates offices in Tokyo, Singapore, Hong Kong, Mumbai and Shanghai, forming a pan-Asian platform to support portfolio companies’ growth and value creation.

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