MBK Partners, a private equity firm, has been selected as the preferred bidder to acquire Japan-based machine tool manufacturer Makino Milling Machine. The deal is expected to proceed through a takeover bid (TOB), industry sources said on Monday.
MBK outpaced global private equity firms, including Carlyle, in a competitive bidding process. The offer price is reportedly over ¥11,000 per share, which is about $76 or 105,000 South Korean won.
Makino had recently faced the risk of a hostile takeover. In April, Nidec, a Japanese motor manufacturer, launched an unsolicited tender offer. Nidec had offered ¥11,000 per share to gain full control of Makino, which would have valued the company at around ¥250 billion. In response, Makino began talks with private equity firms that could present better terms. This strategic move led to Nidec’s withdrawal from the deal.
MBK emphasized its track record in the machine tool industry during negotiations. In 2016, MBK acquired the machine tool division of Doosan Infracore—now called DN Solutions—for 1.13 trillion won (roughly $823 million). The firm restructured the business and later sold it to DN Automotive in 2021 for 2.4 trillion won.
Makino is considered a profitable company, with about 80 percent of its sales coming from overseas. A large portion of this revenue comes from Asia, including China. MBK plans to use its network across Northeast Asia to grow Makino’s global reach and customer base.
Makino welcomed the news, stating, “We believe it is desirable to proceed swiftly with negotiations with MBK and reach a final agreement.”
The planned acquisition marks MBK’s continued interest in the Japanese market. Last year, MBK bought Alinamin Pharmaceutical—a vitamin supplement company—from Blackstone for ¥350 billion. Earlier this year, it also acquired Japanese printed circuit board (PCB) maker FICT, previously owned by Fujitsu. The deal was made in partnership with U.S.-based FormFactor Inc., and the total value was around ¥100 billion.
MBK’s latest move signals its growing presence in Japan’s high-tech and manufacturing sectors, as the firm continues to pursue strategic acquisitions across the region.
