Japan's Polaris sells power equipment supplier

The private equity firm bought the business in March 2016 with a view to leveraging increased electricity demand related to the 2020 Tokyo Olympics. Orix Rentec also cited construction of infrastructure and facilities for the Olympics – as well as a shift from equipment ownership to rental – as a contributing factor in its acquisition. Polaris’ entry and exit valuations were not disclosed.

Yodogawa manufactures transformers and power receiving equipment with a large inventory of ready-for-use products aimed at the rental market. The company has achieved stable sales growth and high profitability by expanding its operations from its base in the Kansai region, which includes Osaka, Hyogo, and Kyoto, to the Greater Tokyo area, Polaris said in a statement.

The GP added that decided to proceed with the sale because of the synergies Yodogawa can realize – in terms of developing its client base and growing its product portfolio – as part of the Orix Group. Orix Rentec is already active in the rental space but focuses on electronic measurement, scientific analysis, and IT-related equipment.

Polaris made the investment from its third fund, which closed at JPY39.1 billion ($347 million) in 2013. The firm completed fundraising for its fourth vehicle in May 2017 with JPY75 billion in commitments. Recent investments include the carve-out of LB, a soft drink-focused division of Japanese beverage producer Asahi Group.

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• Topics
• North America
• Trade sale
• Support services
• Infrastructure
• Japan
• Polaris Capital
• Exit
• manufacturing