Bain Capital Leads US$80 Million Management Buyout of Japan Wind Development Co.

Bain Capital Partners has initiated a 9.7 billion yen (US$80 million) management buyout of publicly-traded Japan Wind Development Co. Ltd. that will take the company private.

Once the deal is completed, Bain Capital and Japan Wind CEO Masayuki Tsukawaki, will own the shares of the developer, with. Tsukawaki continuing as CEO. The transaction will take place as a takeover-bid starting March 24, 2015 and is expected to complete after 30 working days on May 8, 2015.

Bain will pay 580 yen a share for all the share of Japan Wind, which traded at 463 yen before the announcement. Bain said the motivation for the buyout was the growing importance of renewable energy in Japan, following the earthquake and tsunami which hit the nation in 2011, and cripple many of its nuclear-power plants which exploded and caused radiation.

Japan Wind was formed in 1999, and is the country’s top wind energy developer.

“Wind power is a more reliable, economical, and environmentally friendly source of energy, and contributes to a more sustainable energy industry in Japan,” said Yuji Sugimoto, Managing Director at Bain Capital 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.

“After successfully closing this MBO, Bain Capital plans to further accelerate JWD’s wind power business with a focus on operational improvements in existing wind farms and developing new wind farms, which will be done alongside Mr. Tsukawaki and in full collaboration with the current JWD management.”

Japan Wind was formed in 1999, and is the country’s top wind energy developer.

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