Bain Capital emerges as private equity winner in $7.5bn Hitachi Metals deal

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A Bain Capital-led consortium has beaten off private equity competition to buy Hitachi‘s metals unit in a JPY817bn ($7.5bn) take-private deal.

The consortium, which includes two Japanese funds, will buy the 47% of Hitachi Metals that Hitachi does not own for JPY2,181 per share,  a 15.8% premium compared to yesterday’s closing price.

Hitachi will then sell its 53% stake to the consortium for JPY382bn, Hitachi Metals said.

A slew of private equity majors were reportedly in the running for Hitachi Metals in a deal Reuters suggested last November could exceed $6.4bn.

Apollo Global, Carlyle and KKR as well as Bain Capital were flagged as potential bidders.

Hitachi Metals specialises in the manufacture and marketing of advanced metals products, components and materials, including components for cars, aircraft, trains, energy sources, medical devices and home appliances.

Two years ago Bain Capital and Carlyle were beaten to the punch in bidding for Hitachi’s chemicals and diagnostic imagine business, which was picked up by trade buyer Showa Denko at a roughly $8.8bn valuation.

Last week Bain Capital was reported to be the latest private equity giant circling Toshiba after CVC‘s $20bn bid was rejected by the firm.

CVC is said to have approached Bain Capital over a potential joint bid before making its own solo offer, Reuters reported, citing an unnamed source.

Reports earlier this week said Bain Capital has reached a JPY110bn ($1bn) final close for its first Japan-focused fundraise.

The firm took just six months to reach the final close at its institutional hard cap of JPY100bn, AVCJ said, citing sources it said were close to the situation.

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