Private equity firms Bain Capital, Warburg Pincus, and Blackstone are circling Nikkon Holdings, a Japanese logistics company that's exploring a potential take-private deal that could be worth around $7 billion.
According to sources familiar with the matter, the first round of bids is expected next month. The Tokyo-based company has hired financial advisers and set up a special committee to oversee the process, with a second round scheduled for August.
Nikkon Holdings was founded in 1950 and operates through four segments: transportation, packaging, testing, and warehousing. It's listed on the Tokyo Stock Exchange's Prime Market and had a market cap of about $2.2 billion before the news broke. After the announcement, its market cap jumped to roughly $4.6 billion, and Bloomberg notes it could eventually reach nearly $6.2 billion. Shares were up 9.75% as of 3:30 GMT.
Major shareholders include Farallon Capital Management, with a 23% stake, and Oasis Management Co., which owns 17%.
This interest comes as Japan's private equity market heats up. A recent Bain & Company Asia-Pacific Private Equity report highlighted Japan as the only major market in the region to generate growth in both deal value and count. The report attributes this to "corporate governance reforms, ample carve-out and privatization opportunities, and supportive financing conditions."
"Ongoing governance reforms and balance sheet optimization by Japanese corporates have continued to unlock carve-outs and opportunities to take companies private," the report added. "Strong historical returns, capital investment from local and global GPs, along with favorable financing conditions, have enabled large-scale transactions, helping increase Japan's market share."
