HONG KONG, March 6 (Reuters) -

Private equity firm Carlyle Group ( CG ) has begun the sale

process of Japanese cosmetics supplier Tokiwa Corp in a deal

that could value the company at $800 million, three sources with

knowledge of the matter said.

Non-binding bids for the company are expected by mid-March,

said the sources, who declined to be named as the information is

confidential.

Potential buyers include private equity firms and several

companies in the cosmetics industry, said one of them.

The 75-year-old Japanese company has about $50 million in

expected earnings before interest, taxes, depreciation, and

amortization (EBITDA), the sources said.

Tokiwa is aiming to fetch a high-teen multiple over the core

earnings in a sale, potentially valuing the company at $800

million or more, they said.

Carlyle and Tokiwa declined to comment.

Jefferies and SMBC Nikko Securities are advising Carlyle on

the sale, sources have said. SMBC Nikko declined to comment,

while Jefferies did not immediately comment.

Carlyle invested an undisclosed amount in Tokiwa in 2019 via

its third Japan-focused buyout fund to help the company expand

overseas, it said at the time.

Tokiwa, known as a major supplier of eyeliners and brow

defining pencils to global cosmetics brands, is engaged in the

research, development and manufacturing of cosmetic products and

employs more than 800 people around the world.

Carlyle was one of the first global private equity firms to

open an office in Tokyo two decades ago and has invested more

than 450 billion yen ($3 billion) in more than 30 Japanese

companies.