2 October 2020
BDA advises Furukawa Electric on JV with Superior Essex
Established JV with Superior Essex
BDA Partners is pleased to announce that its client, Furukawa Electric Co Ltd (“Furukawa”), has established a joint venture for the global magnet wire business with Superior Essex Holding Corp (“SPSX”).
Furukawa has transferred, via its wholly-owned subsidiary Furukawa Electric Magnet Wire America Inc (“FEMA”), the heavy magnet wire business and polyimide tube business conducted by Furukawa and its wholly-owned subsidiary Furukawa Magnet Wire Co Ltd (the “Japan Business”), 100% of issued shares in FE Magnet Wire (Malaysia) Sdn Bhd, as well as all its equity interest (49%) in Essex Furukawa Magnet Wire Europe GmbH, to Essex Furukawa Magnet Wire LLC (“EFMW”), a joint venture company established with SPSX (the “Transaction”).
Following the Transaction, EFMW is owned 39% by FEMA and 61% by SPSX. As part of the Transaction, the Japan Business was transferred to a new company, Essex Furukawa Magnet Wire Japan Co Ltd, by way of an absorption-type company split.
Furukawa had previously announced on March 26th, 2020 that it postponed the execution date of the Transaction until October 1st, due to factors related to the global COVID-19 pandemic. We are pleased to announce the completion of the Transaction as scheduled.
BDA Partners was the exclusive financial advisor to Furukawa on the Transaction.
The joint venture is a continuation of Furukawa’s long-standing relationship with SPSX. SPSX is a long-time, reliable business partner, well-known to Western customers, and the world’s largest enamel wire manufacturer, operating 12 manufacturing plants globally including in the United States and China. This joint venture will enable the two companies to provide high value-added products and technological innovations required by customers globally, and to capture significant business opportunities for heavy magnet wire products created by the global expansion of the automobile electrification market.
About Furukawa Electric
Furukawa Electric Group started business in 1884, when its copper-smelting facility and wire manufacturing factory was established. Since then, Furukawa Electric has become a pioneer in the latest technologies by addressing diverse technological issues. Furukawa Electric has released products in a number of areas, including telecommunications, electronics, automobiles, and construction, with the three types of materials it works with at their core, being optics, plastics, and metals. Many of these products have attained a top global market share, and all of its products have contributed to society in numerous business areas. www.furukawa.co.jp
About Superior Essex
Superior Essex is a global leader in the design, manufacture and supply of wire and cable products. The company’s Magnet Wire and Distribution business segment is the world’s largest producer of magnet wire, an insulated copper or aluminum conductor used by major original equipment manufacturers and distributors. Magnet wire is found in industrial motors, transformers and generators, automotive applications, electrical coils and controls, and appliances. In North America, the company also participates in the telecommunications industry through its Communications Cable business segment. Superior Essex is the industry leader in outside plant copper communications wire and cable products, which are used for voice and data transmission and are installed outdoors. It also manufactures and supplies fiber optic cables and premises copper cables, which are installed within houses and offices. www.superioressex.com
BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with over 20 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes.
BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese government-owned bank with US$150bn of assets.
US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc., a broker-dealer registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc. is a member of the Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorised and regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd. is licensed and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated activities to professional investors.
Divested Doosan Mecatec to a consortium of Bumhan Industries and Metistone
Acquired by Indorama Ventures
Divested Isuzu Glass to Basic Capital Management
Divested Toshiba Transmission & Distribution Europe to Mutares
Acquired NEC Energy Solutions from NEC Corporation
Divested ASG Print to GPA Global and EQT
Divested Doosan E&C to a private equity consortium
Divested Walbro to Landon Capital & Nova Capital
Divested PCI Limited to Celestica Inc
Divested India business to IMC Swarnaa Ventures Pvt Ltd
Divested majority stake in STS Group to Adler Pelzer Group
Divested 100% stake to a leading European water company
Divested 70% stake to SCG Packaging
Divested Compart Systems to Shanghai Wanye Enterprises
Divested ThiPha Cable and Dovina to Stark Corporation
Divested Nagano Industry to JAFCO
Divested Nippon Oil Pump to CITIC Capital
Divested Parador to HIL Limited
Divested its 49% stake in Mitsubishi Motors Philippines
Divested 80% stake to JKL Partners