Showa Aluminum, a portfolio company of US-based investment firm Apollo Funds, has agreed to buy Mitsubishi Aluminum’s business, which supplies aluminium rolled and extruded products.
Mitsubishi Aluminum is a wholly owned subsidiary of Japanese diversified advanced material producer Mitsubishi Materials.
Showa Aluminum has also signed a definitive agreement to acquire all the shares of aluminium beverage can manufacturer Universal Can.
Universal Can will be bought from its current shareholders, Mitsubishi Materials and Japanese packaging group Hokkan Holdings.
Mitsubishi Materials holds an 80% stake in Universal Can, with Hokkan owning the remaining 20%.
Apollo has pledged to provide all ‘necessary support’ to increase the businesses’ value propositions and growth using its knowledge of the aluminium and packaging industries.
The acquisition is part of Apollo’s commitment to expanding the Showa Aluminum business through add-on deals.
It is the third major deal that the company has closed or entered this year.
Apollo Japan Private Equity head and partner Tetsuji Okamoto said: “This transaction will bring together two highly complementary businesses, each with a proud heritage of providing high-quality aluminium products to a variety of end-markets and customers.
“We are also pleased to have worked with Mitsubishi Materials to structure a carve-out that meets their business portfolio transformation needs.”
The financial terms of the agreements have not been disclosed.
The deals are subject to customary closing conditions and regulatory approvals and are scheduled to close by the end of next March.
BofA Securities Japan served as financial advisor for Showa Aluminum and Apollo Funds, while Paul, Weiss, Rifkind, Wharton & Garrison acted as legal advisors together with Anderson Mori & Tomotsune.
Earlier this year, Apollo agreed to buy an equity stake of around 67% in Reno De Medici, a recycled coated cartonboard manufacturer based in Italy.