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Infroneer Holdings to Acquire Japan Wind Development for $1.36 Billion

i 5076.TSE Mid and Small Cap 2000
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Japanese civil engineering group Infroneer Holdings has announced plans to acquire wind power company Japan Wind Development from U.S. private equity firm Bain Capital for an estimated 200 billion yen ($1.36 billion). This move will significantly expand Infroneer’s presence in the rapidly growing wind power sector.

The acquisition will provide Infroneer with access to Japan Wind’s substantial portfolio of renewable energy projects, including roughly 3,300 megawatts of new wind power developments and existing wind farm maintenance operations. This aligns perfectly with Infroneer’s medium-term business plan, which prioritizes growth in the renewable energy market.

The Japanese wind power market is anticipated to witness explosive growth in the coming years, driven by the country’s ambitious carbon emission reduction goals. Market research estimates that the wind power generation equipment market will reach 750 billion yen by fiscal 2028, representing a 6.5-fold increase from 2022.

This acquisition follows a growing trend of major investments in Japan’s renewable energy sector. In May, Nippon Telegraph and Telephone and JERA jointly acquired solar and onshore wind power company Green Power Investment for approximately 300 billion yen.

Infroneer appears to be confident that the ongoing legal case against Japan Wind founder and former President Masayuki Tsukawaki will not significantly impact the deal. Tsukawaki is accused of bribing a lower house lawmaker and the company has been ordered to undergo a legal compliance review.

Infroneer’s existing experience in the wind power sector includes the development and subsequent sale of an onshore wind farm in Akita prefecture. With the acquisition of Japan Wind Development, the company is poised to become a major player in the rapidly expanding Japanese wind power industry.

This latest move also underscores a broader trend among Japanese construction companies venturing into the wind power sector. Companies like Penta-Ocean Construction, Shimizu, Kajima, Toda, and Kumagai Gumi are investing in various aspects of the wind power industry, including offshore wind farm construction and related technologies.

The acquisition of Japan Wind Development marks a significant step forward for Infroneer as it seeks to diversify its business and capitalize on the burgeoning wind power market in Japan.

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