Bain leads $80m buyout of Japan Wind Development

Bain Capital is set to take-private Japan Wind Development with management in a buyout worth about $80 million.

Bain Capital said on Monday that it will launch a take-private transaction for publicly-traded Japan Wind Development (JWD), in partnership with management.

Upon completion of this transaction, Bain Capital and Masayuki Tsukawaki, CEO of JWD, will own the shares of JWD and Tsukawaki will continue in his role as CEO.

The transaction will take place in accordance with the takeover-bid process, starting March 24 and is expected to complete after 30 working days on May 8. The final purchase price is expected to be up to about 9.7 billion yen ($80 million).

Established in July 1999 to develop wind farms as an alternative energy source, JWD operates one of the largest wind farms in Japan.

Public consciousness around alternative energy has been rising following the Great East Japan Earthquake in 2011. Along with the increasing demand for a reduction in greenhouse gas emissions, events related to the earthquake and tsunami have demonstrated the need for reliable and clean wind power.

JWD‘s role in expanding wind power will enable the optimization of Japan’s energy mix by increasing the penetration of wind power across the country.

Yuji Sugimoto, Managing Director at Bain Capital in Japan, commented, “Wind power is a more reliable, economical, and environmentally friendly source of energy, and contributes to a more sustainable energy industry in Japan. 

“After successfully closing this MBO, Bain Capital plans to further accelerate JWD’s wind power business with a focus on operational improvements in existing wind farms and developing new wind farms, which will be done alongside Mr. Tsukawaki and in full collaboration with the current JWD management.”

Yuji Sugimoto also commented, “JWD currently holds the largest development pipeline for new wind farms in Japan, including a number of well positioned sites in areas such as Hokkaido and Tohoku. The Company’s strong growth potential will further contribute to a more favorable energy mix in Japan.”

Bain Capital first established a presence in Japan in 2006 upon opening an office in Tokyo and now employs more than 30 professionals. In Japan, Bain Capital has invested in ten companies including Skylark, Ooedo Onsen, Jupiter Shop Channel, Domino’s Pizza Japan and Bellsystem24.

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