Flat glass manufacturer Nippon Sheet Glass (NSG) looks set to be acquired by financial group Apollo Funds in a $3.7 billion (JPY 590 billion) acquisition.
NSG, which makes architectural, automotive and solar glass, has been struggling with debt since it acquitted Pilkington two decades ago.
NSG said it would use the proceeds to pay down JPY 189bn of debt held by Pilkington, which became a subsidiary when it was bought for £2.2bn in 2006.
Under the terms of the agreement, Apollo will invest JPY140bn of funds from major Japanese banks into NSG to repay debt they are owed.
In conjunction with this investment, NSG’s principal lenders will transition a portion of their outstanding loans to equity. It said this would reinforce their commitment and provide for a more stable balance sheet structure for the company.
Apollo said the NSG Group’s diversified manufacturing platform, industry heritage and deep customer relationships would position the company to capture demand for energy-efficient architectural glass, automotive glazing and solar products.
Tetsuji Okamoto, Lead Partner, Asia Pacific Private Equity at Apollo, said: “NSG Group is a foundational player in the global glass industry, and this tailored financing reflects the collective commitment of stakeholders across Japan to the long-term success of NSG Group.
NSG Representative Executive Officer, President and CEO Munehiro Hosonuma, said: “This partnership with Apollo Funds and our principal lenders enables us to reinforce our financial position, invest in our people and technology and lead the next era of glass manufacturing.
"With Apollo’s deep expertise in manufacturing and long-term partnership, we are prepared to continue delivering for our customers while building a stronger, more resilient enterprise.”
The transaction is expected to be completed by around March 2027.
