Private equity firm KKR, via its Asia Pacific Infrastructure Fund, has reached a partnership which will see the firm assuming ownership and control of Japanese chemical storage tank operator Central Tank Terminal Co., Ltd. from an affiliate of Macquarie Infrastructure and Real Assets (MIRA). The approximate value of the deal is currently set at 50 billion yen (US$ 440 million).
Launched in 1966, Central Tank Terminal is Japan’s largest independent chemical storage tank operator, providing over 300,000 cubic meters in storage capacity across seven terminals situated close to key ports and strategic hubs around Tokyo Bay, Osaka Bay, Nagoya, and Kitakyushu.
Central Tank Terminal currently offers tank storage and auxiliary services to over 80 blue-chip customers. This includes leading chemical manufacturers with decades-long relationships with Central Tank Terminal. The deal is scheduled to be finalized by the fourth quarter of 2021, and remains subject to the customary regulatory approvals and closing conditions.
Asides its acquisition of Central Tank Terminal, KKR has made several key investments in Japan which came from its private equity strategy, which includes Seiyu, a countrywide supermarket chain; Koki Holdings, a power tool and life science equipment manufacturer; Kokusai Electric, a semiconductor manufacturer; PHC, a major manufacturer of medical devices; Marelli, a leading supplier of automotive components; and From Scratch, an integrated data-driven marketing SaaS platform in Japan.
Rothschild & Co. served as KKR’s financial advisor on this deal. In May 2016, Royal Vopak divested its 40% ownership in the joint venture Nippon Vopak Co. Ltd. to Macquarie Asia Infrastructure Fund. Nippon Vopak previously held and operated five terminals in Japan with a total operational capacity of 203,200 cubic meters.
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