Exclusive financial advisor to Tokai
KPMG Corporate Finance LLC acted as the exclusive financial advisor to Tokai International Holdings, Inc.
Tokai International Holdings, Inc. (Tokai) acquired a majority stake in Polyflame Holdings SAS (Polyflame) in September 2019. The acquisition expands Tokai’s European distribution footprint and provides a foundation to accelerate growth across European markets.
KPMG Corporate Finance LLC served as exclusive financial advisor to Tokai, a US-based manufacturer and distributor of disposable pocket lighters and multi-purpose utility lighters worldwide, on their cross border acquisition of Polyflame, a distributor of lighters, smoking accessories and gift items across Europe. Polyflame is headquartered in Paris, France with subsidiaries in China, Germany, Hong Kong and Italy.
In support of the strategic growth plan, key members of the target’s senior management team exchanged a portion of their equity in Polyflame for shares in the new holding company.
KPMG’s breadth of services and international reach were leveraged in the completion of a successful transaction. KPMG Corporate Finance LLC’s in-depth consumer markets knowledge and cross-border transaction experience were instrumental in managing the buy-side transaction process and delivering a successful outcome for Tokai to leverage in its next stage of growth. In addition, KPMG International Tax structured the transaction across multiple tax jurisdictions to achieve maximum tax efficiencies including the utilization of a meaningful, but heretofore untapped, subsidiary net operating loss (NOL). Finally, KPMG Financial Due Diligence – France was introduced by KPMG Corporate Finance LLC and engaged by Tokai to perform the quality of earnings analysis on the target.
Tokai is one of the largest manufacturers and distributors of disposable pocket lighters and multi-purpose utility lighters worldwide. Tokai markets its products using its Scripto, Calico and Tokai brands among others. Closely-held Tokai is headquartered in Ontario, California and has operations in Australia, Canada, China, Germany, Hong Kong, Indonesia, Japan, Mexico and Thailand.
KPMG Corporate Finance LLC
The global Corporate Finance practices of KPMG International’s network of independent member firms was ranked #1 as the top M&A middle-market adviser globally by Thomson Reuters SDC, based on number of completed transactions, for 2018.