Houlihan Lokey Advises Tokai Carbon

Houlihan Lokey is pleased to announce that Tokai Carbon Co., Ltd. (Tokai Carbon), one of the world’s leading producers of high-quality carbon and graphite products, has sold its German subsidiary Tokai Erftcarbon GmbH (TEG), a manufacturer of large-format graphite electrodes, to Lenbach Equity Opportunities III GmbH & Co. KG (LEO III Fund), managed by DUBAG Group, a Germany-based private equity fund specialising in corporate carve-outs. The transaction closed on 30 June 2025.

With more than 100 years of experience, TEG is a leading European supplier of high-quality, large-format graphite electrodes for electric steelmaking and a critical contributor to the decarbonisation in the steel sector. The company has industry-leading low breakage and consumption rates, and provides superior after-sales services and technical support to its customers through quick on-site assistance as well as innovative solutions for quality monitoring. TEG is strategically positioned to meet the increasing demand for high-power, high-stability super-size electrodes as steelmaking shifts from oxygen blast furnaces to more environmentally friendly electric arc furnaces.

Tokai Carbon is a Tokyo Stock Exchange-listed global leader in high-quality carbon and graphite products. Tokai Carbon serves global customers in a wide range of industries, such as steel, automotive, semiconductors, and electronic components, through a global network across 11 countries in Asia, Europe, and North America. In 2024, Tokai Carbon reported consolidated sales of ¥350 billion and total assets of ¥640 billion.

DUBAG Group is a rapidly growing investment firm based in Munich that manages the LEO III Fund. It invests in mid-cap companies facing special situations such as corporate carve-outs, turnarounds, succession issues in family-owned businesses, complex financing structures, and tail-end situations for financial investors. The fund follows a pan-European investment strategy, with a particular focus on the DACH region and Italy.

Houlihan Lokey served as the exclusive financial advisor to Tokai Carbon. This transaction highlights Houlihan Lokey’s differentiated capability to offer highly tailored advisory services in complex situations, navigate turbulent market dynamics, and provide the most relevant sector insights as well as seamless cross-border execution.

RELATED: Industrials, Metals and Engineered Materials, Mergers & Acquisitions