PE firm Apollo to Buy Mitsubishi Chemical’s MAFTEC Business for $759 Million

Apollo Global Management, Inc. announced that funds managed by its affiliates have entered into a definitive agreement to acquire the Thermal and Emission Control Materials (MAFTEC) from Mitsubishi Chemical Corporation.

MAFTEC is a global leader in thermal and emission control protection materials, primarily for the indus-trial and automotive industry as OEMs adopt their chemical fiber products to reduce emissions in tradi-tional and hybrid vehicles. The Business is also currently developing product applications for electric vehicle batteries.

Tetsuji Okamoto, Partner and Head of Japan at Apollo, said, “We are also pleased to have worked with Mitsubishi Chemical to structure a deal that supports their business portfolio transformation strategy. This is Apollo’s second corporate carve out in Japan this year and demonstrates the firm’s ability to work with companies on significant, complex transactions that deliver compelling benefits to both par-ties.”

The deal also marks Apollo’s second Private Equity fund investment in Japan this year, following the acquisition of Showa Denko’s Aluminum Cans and Aluminum Rolling businesses by Apollo-managed funds, and comes amid increasing investment activity across the Asia-Pacific region.

Subject to satisfaction of customary closing conditions including regulatory approvals, the MAFTEC transaction is expected to be completed by March 2022.

Mitsubishi Chemical said in a separate statement that the transfer price is 85 billion yen ($759 million).

Citigroup Global Markets Japan Inc. acted as financial advisor and Paul, Weiss, Rifkind, Wharton & Gar-rison LLP alongside Mori Hamada & Matsumoto as legal advisors to the Apollo Funds. Mizuho Securities acted as financial advisor and Anderson Mori & Tomotsune as legal advisor to Mitsubishi Chemical.