Boston-headquartered private equity firm Bain Capital has completed a majority investment in Japan’s Showa Aircraft Industry for 90 billion yen ($817 million) and delisted the company from the local stock exchange.
The final transaction price is 30 per cent higher than the 69.4 billion yen Bain Capital offered in January this year.
Founded in 1937, Showa Aircraft is engaged in products related to the transportation industry including honeycomb core panels and other industrial applications. It also operates a significant portfolio of properties and commercial facilities in Akishima City, including golf courses, hotels and shopping malls.
“Through the redevelopment of Showa Aircraft’s real estate assets, we hope to support the local economy in Akishima and meet the growing demands of the city’s expanding population,” said David Gross-Loh, a managing director of Bain Capital Private Equity.
Loh said Bain Capital will support and continue to grow Showa Aircraft’s manufacturing business.
The private equity firm is looking at ramping up its presence in the Japanese buyout market, having recently offered to take medical services group Nichii Gakkan private in a $1.17 billion management buyout.
Bain Capital first entered Japan in 2006 with an office in Tokyo. Since then, it has invested in 17 local companies.
It was earlier said to be raising capital for its first Japan buyout fund that will focus on mid-sized companies in the country. If successful, Bain Capital will join global alternative investment firms Carlyle and KKR in raising dedicated vehicles for Japan.