Polaris buys Japanese timber company

Hivic averaged a total equity value of JPY6.9 billion ($65.1 million) during 2016 and claims about JPY13.3 billion in assets. According to a statement, the acquisition will be transacted by the Polaris Private Equity Fund III, which closed in 2013 at JPY39.1 billion.

Founded in 1967, Hivic manufactures and sells building materials, housing construction equipment and custom-built wooden houses. This operation includes a membership-only direct-bid timber market with customers primarily in eastern Japan. Net sales increased 3% during the 2016 financial year to JPY20.3 billion, while net profit gained 11% to reach JPY501 million.

Polaris cited the company's strong clientele among mid-size home builders and contractors as well as the advantages of its direct-bid market operation, which eliminates the need for middle men such as construction material trading houses and sales agents. The GP is expected to work on improvements in operational flexibility and customer experience for builders and suppliers. It will also provide management support on finance, human resources and corporate governance.

Polaris has been active in industrial sectors lately, having acquired a Japanese power generation equipment company, Yodogawa Transformer, earlier this year in a deal estimated to be worth JPY100 million. This followed quickly on the purchase of a manufacturing unit of Hitachi.

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• Topics
• North Asia
• Industrials
• Buyout
• Polaris Capital
• Japan
• manufacturing