Houlihan Lokey Advises Yamato Kogyo, Siam Yamato Steel, and Hanwa

Houlihan Lokey is pleased to announce that Yamato Kogyo Co., Ltd. (Yamato), Siam Yamato Steel Co., Ltd. (SYS), a consolidated subsidiary of Yamato in Thailand, and Hanwa Co., Ltd. (Hanwa) jointly acquired 95% common shares of PT Nusantara Baja Profil (NewCo), a newly established company that resulted from carving out PT Gunung Raja Paksi Tbk’s (GRP) structural section steel business and PT Gunung Garuda’s (GRD) related real estate assets. The parties agreed to this transaction at a 100% equity value of around $425 million. This transaction closed on May 31, 2024.

Yamato, established in 1944 and headquartered in Hyogo, Japan, manufactures electric furnace steel in Japan and internationally. It has operations in Japan, the United States, South Korea, Thailand (SYS), Bahrain, Saudi Arabia, and Vietnam. Yamato is currently focusing on the growth of the ASEAN market, where infrastructure investments and the demand for steel products are high. Under its midterm business plan, the company aims to build a third business base in the region (following SYS in Thailand and POSCO YAMATO VINA STEEL in Vietnam) by establishing 3 million tons of structural section steel supply capacity.

Hanwa, founded in 1947 and headquartered in Osaka, trades steel, metals and alloys, food products, petroleum and chemicals, and other products in Japan and globally. It operates a wide range of steel businesses in Indonesia.

GRP is a leading steel manufacturer with more than 50 years of history in Indonesia with the largest market share of structural section steel. It has been listed on the Indonesian stock market since 2019 and is currently promoting various corporate transformations with a focus on ESG initiatives.

For Yamato, this transaction marks an important milestone in its midterm business strategy to establish another business pillar in the ASEAN region by leveraging the global assets and know-how of its group and Hanwa’s local knowledge. Through this transaction, Hanwa aims to enhance its presence in the growing Indonesian market by collaborating with Yamato.

Houlihan Lokey served as the exclusive financial advisor to the buyer consortium in this transaction. This is the fourth successful M&A transaction that Houlihan Lokey has advised Yamato in the past five years, exemplifying the strong relationship between Houlihan Lokey and Yamato.

Press releases for the transaction can be read here: Yamato. Hanwa.

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