Global investment firm KKR said on Monday that it had signed definitive agreements under which it will acquire Japanese chemical storage tank operator Central Tank Terminal (CTT) from an affiliate of Macquarie Infrastructure and Real Assets.
Central Tank Terminal is the largest independent chemical storage tank operator in Japan and offers more than 300,000 cubic meters of storage capacity across seven terminals located in proximity to key ports and strategic hubs around Tokyo Bay, Osaka Bay, Nagoya and Kitakyushu.
The investment, which will be made from KKR’s Asia Pacific Infrastructure Fund, will be used to bolster CTT’s leading position in the chemical storage tank industry and to pursue opportunities for future growth, including bolt-on acquisitions.
“We are pleased to mark our first infrastructure investment in Japan with a leading business like CTT. We view this as the latest milestone for KKR in the market and believe this underscores our ability to leverage our experience and access to best global business practices to help take Japanese businesses to their next stage of growth across industries and sectors,” Hiro Hirano, Partner for KKR Asia Pacific and Chief Executive Officer of KKR Japan, said in a press release.
“Under the leadership of CEO Miyakawa, CTT has established itself as one of the top operators in Japan’s tank storage sector, and forged a strong culture of responsible safety and environment management. This is evident in its long relationships with its major customers spanning decades, and its initiative to report its ESG performance annually,” Taka Hirayama, a Director on KKR’s Infrastructure team in Tokyo, said.
The acquisition is expected to be finalized by the end of the fourth quarter of 2021, subject to regulatory approvals.
Rothschild & Co. served as KKR’s financial advisor on the transaction.
KKR shares closed lower for a third consecutive trading session in New York on Monday. The stock went down 1.68% ($1.35) to $78.93, after touching an intraday low at $78.08. The latter has been a price level not seen since November 2nd ($75.21).