Bain initiates $80m Japan energy deal

The global firm hopes to privatise TSE-listed Japan Wind Development

Bain Capital has launched a take-private transaction in Japan that will see the firm buy out Japan Wind Development, a Japanese wind farm and operator, according to a statement.

The takeover bid process will commence on 24 March and will end on 8 May this year, with the final deal value set to reach $80 million.

Japan Wind Development was founded in 1999 to develop wind farms as an alternative energy source, a growing sector in Japan as public awareness about the environment continues to rise following the Japan earthquake in 2011.

“Wind power is a more reliable, economical, and environmentally friendly source of energy, and contributes to a more sustainable energy industry in Japan. JWD has a distinctive and robust position in the industry with a clear track record in developing and operating wind farms across the country,” Yuji Sugimoto, managing director at Bain Capital in Japan, said in a statement.

Following the transaction, Bain intends to work with existing management to implement a number of operational changes in the company’s existing wind farms and develop new farms simultaneously.

Sugimoto added, “Japan Wind Development currently holds the largest development pipeline for new wind farms in Japan, including a number of well positioned sites in areas such as Hokkaido and Tohoku.”

Bain has been active in the Asia Pacific region since 2006, with Japan being its prized market in the region. The firm is set to launch its third Asia-dedicated private equity vehicle in the coming months, with market sources expecting the firm to target between $2.5 and $3 billion. Bain declined to comment on fundraising.