TOKYO -- Japanese investment fund Polaris Capital Group will purchase Yodogawa Transformer, an Osaka-based manufacturer and lessor of power substations, aiming to accelerate its growth through overseas expansion and acquisitions.
Polaris Capital will acquire all outstanding shares March 30, likely for several billion yen.
Yodogawa Transformer rents out electrical substations for major construction projects, typically to general contractors or electric companies. It reported nonconsolidated sales of 2.8 billion yen ($24.6 million) and operating profit of 500 million yen for the fiscal year ended March 2015.
Polaris Capital will install executives on Yodogawa Transformer's board after the acquisition. It will help the company expand elsewhere in Asia to tap booming demand for construction of high-speed rail and other infrastructure. The fund expects to remain invested for about three to four years and aims to recoup costs by taking the company public later on.