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Bain nears $8bn deal to buy Hitachi Metals

According to people who know the argument directly, Bain Capital will buy Hitachi Metals after a consortium led by a private equity group in the United States has been given exclusive bargaining rights for a Tokyo-listed materials group. We are approaching a $ 100 million deal.

Transactions scheduled to be discussed since August last year include Hitachi’s sale of approximately 53% stake in Hitachi Metals, one of Japan’s most important conglomerates in history.

By selling the majority stake in Hitachi Metals, the parent company will be one step closer to liquidating the shares of its listed subsidiary.Investors set their goals Progress in corporate governance..

The sale is also Hitachi’s $ 9.5 billion transaction Acquired Global Logic, a software engineering group in the United States. This is the largest acquisition ever for a Japanese company and is expected to increase interest-bearing debt to $ 28 billion.

“If the company monetizes a portion of its shares in the remaining listed subsidiaries Hitachi Construction Machinery and Hitachi Metals … Motoki Yanase, senior credit officer of rating agency Moody’s, said in a report on Monday.

Bain-led consortiums include Japan Industrial Partners (JIP) and Japan Industrial Solutions (JIS). JIP was founded almost 20 years ago with investment from lenders Mizuho and Bain. He has been involved in the acquisition of various Japanese industrial jewelry, including Sony’s Vaio laptop business and NEC’s defense equipment subsidiary. JIS is a private equity fund manager established in 2010 and raises capital from Japan’s largest mega bank.

Bain’s exclusive right to negotiate with Hitachi Metals is for global private-equity funds such as KKR, Carlyle, Blackstone and Apollo to strengthen their presence in Japan and large conglomerates to dump non-core businesses and real estate. Brought to you by.

Toshiba announced Wednesday as a sign of a surge in private-equity ambitions in Japan Received a formal approach From the European fund CVC. Those familiar with the situation said the $ 20 billion deal could be the largest leveraged buyout in Japan’s history.

Bain has put together a series of transactions in recent years. The biggest was the 2018 acquisition of Toshiba Memory, which was purchased for $ 18 billion as part of a consortium that includes South Korea’s SK Hynix.I also bought Bain last May Showa Aircraft Industry In a transaction that gave a Boston-based fund a bank of 1.25 m2 of land outside Tokyo.

Hitachi said no formal decision was made on the sale. Hitachi Metals declined to comment.

Bain nears $8bn deal to buy Hitachi Metals Source link Bain nears $8bn deal to buy Hitachi Metals

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