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Japan's Polaris exits Nippon Oil Pump to Wendel

  • Andrew Woodman
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Japanese buyout firm Polaris Capital Group has agreed to exit its entire share in Nippon Oil Pump Group (NOP) - a maker of hydraulic pumps and motors - to French listed investment group Wendel.

Financial details of the transaction were not disclosed.

NOP, which was founded 1919, develops hydraulic pumps and motors. It claims to have a domestic market share of more than 90% as well as a substantial share of the global market for trochoid pumps, used for circulating lubricating and cooling oil in metal cutting machine tools.

Polaris was NOP's second private equity owner. The company was first purchased from the founding family by Japan Private Equity - via its Takumi No.2 Investment Enterprise - alongside Sanyo Electric in 2004. Polaris bought the business in 2008 via its JPY39.1 billion ($396 million) Polaris Private Equity Fund II, which had a final close in July 2008.

According to a release, when Polaris acquired the company it had been facing a decline of sales in the wake of the global financial crisis. During the holding period, NOP sought growth through developing new products and via overseas sales expansion.

The company is looking to continue with this strategy under Wendel's management.

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