Affiliates of Apollo to acquire Mitsubishi Chemical’s MAFTEC

Affiliates of Apollo to acquire Mitsubishi Chemical’s MAFTEC

by Pranali Mehta

Apollo Global Management, a global alternative investment management company, has reportedly announced that funds managed by its affiliates have entered a definitive agreement to take over the Thermal and Emission Control Materials business from Mitsubishi Chemical Corporation, Japan's renowned diversified advanced materials, and chemicals producer.

Mitsubishi Chemical’s Thermal and Emission Control Materials (MAFTEC) business is an international pioneer in thermal and emission control protection substances, particularly for the automotive and industrial sectors, as OEMs use their chemical fiber solutions to decrease emissions in traditional and hybrid cars. In addition, the company is actively working on product applications for EV batteries.

According to Tetsuji Okamoto, Partner and Head of Apollo Japan, the MAFTEC business has long developed a solid reputation in supplying best-in-class specialty heat-protective materials to industrial and automotive clients.

Through the deal, the company is thrilled to leverage Apollo's experience to help MAFTEC and its management crew in this next phase of growth. Apollo also sees several opportunities to accelerate growth as MAFTEC assists clients in responding to growing emissions standards and investigates new product uses. Okamoto added.

It was further stated that Apollo is thrilled to have collaborated with Mitsubishi Chemical to arrange an agreement that supports their business portfolio transition plan. This is Apollo's second corporate cut out in Japan this year, demonstrating the firm's capacity to collaborate with firms on large, complicated deals that provide compelling advantages to both parties.

The purchase demonstrates Apollo's ongoing commitment to responsible investing, given that MAFTEC assists its clients in meeting growing environmental regulations throughout the world. The Apollo team intends to use its international expertise in both the automotive and chemical industries to help MAFTEC improve its value proposition and product lines.

The take-over deal is also Apollo's second investment through a Private Equity fund in Japan this year, after the acquisition of Showa Denko's Aluminum Rolling and Aluminum Cans operations by Apollo-managed funds, and comes amid increased investment activity in the APAC region.

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Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...