Jafco acquires Japanese manufacturer from China SOE

NKK was founded in 1968 and is best known for its range of compact excavators, manufactured under the Hanix brand. It also manufactures mobile work platforms and radio-control systems for construction machinery. The company was acquired by Jingcheng in 2011, after filing for bankruptcy due to declines in business following the global financial crisis.

The Japanese firm took a 100% stake in NKK for an undisclosed amount, according to a release by BDA Partners, which advised on the deal. NKK plans to use Jafco’s extensive industry network in Japan to fuel its growth in the domestic market.

Jafco had JPY367 billion ($3.4 billion) in assets under management as of September 2018, across 27 funds covering various strategies including private equity and venture capital. The bulk of its investment activity occurs in Japan, with buyouts and VC deals in the country accounting for JPY5.9 billion and JPY12.2 billion of JPY30.2 billion invested for the year ended March 2018.

Currently the firm is investing its fifth global venture capital and buyout fund, which launched in 2016 and reached a final close of JPY75 billion last year. Investments include Japanese cryptocurrency exchange Tech Bureau and Chinese financial technology start-up Blackfish Technology.

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• Topics
• North Asia
• Greater China
• Buyouts
• Industrials
• Japan
• China
• manufacturing
• JAFCO