Search

, , ,

Bain Capital to acquire Jamco Private in $634 million deal

Rey Alcaraz

Bain Capital to acquire Jamco Private in $634 million deal

Bain Capital, a global investment firm managing over $175 billion in assets, has announced plans to acquire Jamco, a Japanese aircraft interior manufacturer, in a deal valued at approximately 100 billion yen ($634 million), including debt. The acquisition bolsters Bain’s presence in Japan, where private equity investments reached a record $17.9 billion in 2023, according to Bain & Company. It also highlights the firm’s strategic interest in the recovering aerospace sector, which saw global air passenger demand grow by 45% in 2023, based on data from the International Air Transport Association (IATA).

Bain Capital will acquire Jamco for approximately $634 million from shareholders, including Itochu and ANA Holdings. (Photo source: Nikkei Asia)

The deal involves purchasing shares from major stakeholders, including Itochu Corporation and ANA Holdings. Bain plans to take Jamco private, a move designed to prioritize long-term growth and operational efficiency. The buyout bid is set to launch in mid-February, offering 1,800 yen per share—a 27% premium over Jamco’s recent closing price, a common tactic in private equity transactions to secure shareholder approval.

Initially, Bain aims to acquire 56% of the company through the takeover bid. To secure full ownership, Bain will implement a reverse stock split to buy out minority shareholders. In the final phase, Jamco will repurchase the remaining shares from Itochu and ANA.

Why Jamco?

Jamco is a key player in the aviation supply chain, specializing in manufacturing high-quality aircraft interiors such as seating, galleys, and lavatories for major airlines like ANA and Japan Airlines. The aviation industry, projected to reach $990 billion by 2025, offers significant growth opportunities as global air travel rebounds from the pandemic.

Bain views this acquisition as a strategic response to rising air travel demand, with Asia-Pacific markets expected to account for 40% of global passenger traffic by 2040, according to Boeing’s market outlook.

This move aligns with Bain’s broader strategy to invest in Japanese companies with strong growth potential. By taking Jamco private, Bain intends to streamline operations, drive innovation, and position the company to address the evolving demands of the aviation industry.

Article Tags:

Rey Alcaraz

Leave a Reply

Your email address will not be published. Required fields are marked *

In its mission to inform, GMI POST observes factual writing. When appropriate, we provide facts and statistics to support our content.