BDA advises Furukawa Electric on JV with Superior Essex

BDA Partners is pleased to announce that its client, Furukawa Electric Co Ltd (“Furukawa”), has established a joint venture for the global magnet wire business with Superior Essex Holding Corp (“SPSX”).

Furukawa has transferred, via its wholly-owned subsidiary Furukawa Electric Magnet Wire America Inc (“FEMA”), the heavy magnet wire business and polyimide tube business conducted by Furukawa and its wholly-owned subsidiary Furukawa Magnet Wire Co Ltd (the “Japan Business”), 100% of issued shares in FE Magnet Wire (Malaysia) Sdn Bhd, as well as all its equity interest (49%) in Essex Furukawa Magnet Wire Europe GmbH, to Essex Furukawa Magnet Wire LLC (“EFMW”), a joint venture company established with SPSX (the “Transaction”). 

Following the Transaction, EFMW is owned 39% by FEMA and 61% by SPSX. As part of the Transaction, the Japan Business was transferred to a new company, Essex Furukawa Magnet Wire Japan Co Ltd, by way of an absorption-type company split.

Furukawa had previously announced on March 26th, 2020 that it postponed the execution date of the Transaction until October 1st, due to factors related to the global COVID-19 pandemic. We are pleased to announce the completion of the Transaction as scheduled.

BDA Partners was the exclusive financial advisor to Furukawa on the Transaction.

The joint venture is a continuation of Furukawa’s long-standing relationship with SPSX. SPSX is a long-time, reliable business partner, well-known to Western customers, and the world’s largest enamel wire manufacturer, operating 12 manufacturing plants globally including in the United States and China. This joint venture will enable the two companies to provide high value-added products and technological innovations required by customers globally, and to capture significant business opportunities for heavy magnet wire products created by the global expansion of the automobile electrification market.