Showa Denko business unit bought by US-based fund

An announced definitive agreement entails funds managed by affiliates of New York-based Apollo Global Management Inc. acquiring aluminum can and aluminum rolling businesses from Showa Denko K.K., a Japan-based producer of chemicals and industrial materials.

According to Apollo, which calls itself a global alternative investment manager, the deal marks its first private equity investment in Japan after it opened an office there last year to facilitate more investment in the region.

“Showa Denko’s aluminum cans and aluminum rolling businesses have established positions in the Japan market, where we expect to see increased demand for their products, and are well positioned to capture significant growth in the greater Asia region as well,” says Tetsuji Okamoto, partner and head of Japan at Apollo.

Of interest to recyclers, Showa Denko is a buyer of scrap aluminum used beverage containers (UBCs).

An Apollo partner says the equity firm will be on the lookout for business expansion opportunities tied to the new assets.  “This investment demonstrates the flexibility and value that Apollo can bring to Japan and surrounding markets, where we are committed to expanding our presence,” says Steve Martinez, senior partner and head of Asia Pacific at Apollo.

The transaction is “subject to satisfaction of customary closing conditions including regulatory approvals [and] is expected to be completed by August 2021,” according to Apollo.