Polaris buys filling station technology business from Hitachi

The transaction size was not disclosed, although local media reported it as JPY17 billion ($151 million).

HASM, which is controlled by Hitachi Automotive Systems, produces fuel filling and measuring devices used in gas stations. The company already offers services for compressed natural gas and hydrogen stations, and it expects to be more active in these areas due to rising global demand for infrastructure to support next-generation clean energy.

Polaris said in a statement that it would help develop next-generation service stations equipped with internet of things technologies – thereby reducing labor requirements – as well as establish a stronger base in the hydrogen station market and target fuel filing facilities for reserve power generators at mobile phone base stations. Overseas expansion, primarily into Southeast Asia, is another priority.

Hitachi’s overall automotive systems business includes the production of motors and inverters by Hitachi Automotive Systems. The segment accounted for JPY1 trillion – or 10% – of group revenue for the 12 months ended March 2017, roughly the same as the previous year. Over the same period, adjusted operating income fell 11.9% to JPY49.5 billion, while EBIT decreased 35.5% to JPY42.4 billion.

This is the third corporate carve-out announced by Polaris in 2018, following deals to acquire Fujitsu’s mobile devices unit and Rakuten’s online marriage services and event planning business, known as O-net.

The private equity firm is currently deploying its fourth fund, which closed in 2017 at JPY75 billion. The fund invests in mid-cap companies that are not realizing their growth potential due to legacy constraints and aims to introduce initiatives aimed at revitalization.

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• Topics
• North Asia
• Industrials
• Buyouts
• Japan
• Polaris Capital
• energy