J-Star buys majority stake in Japan plastic parts manufacturer
Japanese mid-market buyout firm J-Star has acquired a 70% stake in Kugami, a Yokohama-based plastic parts manufacturer serving the auto and electronics industries, for an undisclosed sum.
The company, set up in 1965 by its current president, Yasutaro Shimizu, mass-produces plastic parts from factories in Nigata and Yokohama, with the latter specializing in plastic parts for mobile phones.
The business expanded into China in 1993 when it opened its first trading center in Hong Kong and a manufacturing facility in Zhuhai, making car interiors. The company has since opened branches in Suzhou, Dalian and Tianjin.
According to a release, Kugami plans to strengthen its operations in China and extend its production capabilities to Southeast Asia and Latin America. The business will also make new additions to its management team and seek M&A opportunities overseas. Shimizu will remain as a president.
The investment was made via J-Star No. 2, a JPY20.4billion ($205 million) fund, which reached a final close in July year.
This is J-Star's third investment from the fund. In July it invested JPY1-2 billion in auto parts firm Tokai Trim alongside the Supply Chain Support Fund, a vehicle backed by the Japan Auto Parts Industries Association and Development Bank of Japan.
Meanwhile in October, J-Star increased its stake in image processing firm Primagest to 66% for an undisclosed sum having initially acquired initial 34.7% stake for JPY498 million the previous June.
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