Houlihan Lokey Advises Kyokuto Kaihatsu Kogyo

Houlihan Lokey is pleased to announce that Kyokuto Kaihatsu Kogyo Co., Ltd. (TYO:7226; Kyokuto) has acquired STG Global Holdings Pty Ltd. (STG) for a purchase consideration of A$100 million. The deal closed on December 2, 2024.

Headquartered in Osaka, Japan, Kyokuto is a publicly listed manufacturer of special-purpose trucks. It has a leading market share in Japan for concrete mixer, tilt tray, and oil tank trucks. Kyokuto also provides environmental equipment and car parking system.

Headquartered in Melbourne, Australia, STG manufactures special-purpose trucks and is a market leader in water and vacuum trucks. The company has extensive engineering expertise in manufacturing special-purpose trucks with production facilities in China and the Philippines.

The transaction will allow Kyokuto to strengthen its overseas operations, which aligns with its medium-term management plan. The transaction amplifies its Australian presence, which was established in 2023 through the acquisition of a local sales agent. The combination will generate meaningful synergies by expanding product offerings and improving profitability by integrating and streamlining Australian and Chinese manufacturing bases.

Houlihan Lokey served as the sole financial advisor to Kyokuto. The deal team assisted in coordinating the due diligence process as well as structuring and negotiating all aspects of the transaction on its behalf. This transaction highlights Houlihan Lokey’s extensive capital goods expertise, excellent cross-border execution capabilities, and thorough global collaboration.

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