NSSK buys Japan power components manufacturer

The size of the transaction was not disclosed. The investment comes from the private equity firm’s second fund, which closed at JPY60 billion ($531 million) in 2017 and typically deploys JPY1-5 billion per deal.

Established in 1949, Fujikura Components produces connectors and plastic covers for conventional overhead and underground transmission lines, renewable energy terminals, and electric vehicle charging stations. It has manufacturing facilities in Japan and Taiwan.

NSSK said in a statement that the electric power industry in Japan has experienced significant change in recent years, such as increasing demand for upgrades for aging power transmission and distribution equipment and expansion of renewable energy.

In addition, in 2023, the country will introduce a base fee and feed-in tariff – known as a wheeling charge – for commercial power producers to finance grid construction and maintenance. These costs were previously covered by utility companies and passed on to consumers in the form of higher prices.

The private equity firm will work with the existing management team on a range of initiatives, including customer base and product range expansion, accounting and finance reforms, and the implementation of environment, social and governance (ESG) protocols.

Parent company Fujikura has interests spanning power and telecommunications cables and components, electrical wires and components, automotive components, medical devices, and real estate.

It generated JPY643.7 billion in sales for the 12 months ended March 2021, down from JPY673.4 billion the previous year. Its net loss narrowed from JPY38.5 billion to JPY5.4 billion. Power and telecommunications products account for nearly half of overall revenue.

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• Topics
• North Asia
• Buyouts
• Industrials
• NSSK
• Japan
• manufacturing
• energy