U.S. private equity firm Bain Capital has reportedly reached an agreement to sell Japan Wind Development to Infroneer Holdings, a Japanese civil engineering group, for an estimated $1.5 billion. The deal, facilitated through a competitive bidding process, signifies a significant move for Infroneer in expanding its presence in the wind power sector, according to sources familiar with the matter.
The formal signing of the deal is expected later on Tuesday, although the sources spoke on the condition of anonymity as the information is yet to be made public. Infroneer's board is set to discuss the matter at a meeting scheduled for the same day, as mentioned in a company statement.
Bain Capital, which led a management buyout of Japan Wind Development in 2015 for 9.7 billion yen ($80 million), declined to comment on the reported transaction. The sale reflects the growing attractiveness of renewable assets in Japan as the country actively pursues its transition to a zero-emission economy.
Renewable energy-focused mergers and acquisitions involving Japanese companies have surged over eightfold to $1.8 billion for the year to date, compared to the same period last year, marking the highest level since 2019, according to data from the London Stock Exchange Group. The number of deals, totaling 28, represents a record high.
Shares in Infroneer, which has articulated its focus on the renewable energy market as part of its medium-term business strategy, experienced a marginal decline of 0.3% in morning trade. The company has previously been involved in the development of two wind farms in northern Japan, one of which was sold last year.
