Global investment firm KKR has bought Japanese chemical storage tank operator Central Tank Terminal (CTT) from an affiliate of Macquarie Infrastructure and Real Assets (MIRA).
CTT has more than 300,000 m3 of storage capacity split between seven terminals located near strategic hubs and ports near Tokyo Bay, Osaka Bay, Nagoya and Kitakyushu. It provides tank storage and auxiliary services and has more than 80 blue-chip customers, including major chemical manufacturers. According to the GRESB Infrastructure Asset Assessment in 2020, which looked at CTT’s environmental, social and corporate governance performance, the company has lower average emissions and energy consumption than its peers.
KKR says that it will pursue future growth opportunities for CTT, including bolt-on acquisitions, and reinforce CTT’s leading position in chemical storage. The investment firm will work alongside CTT’s management to improve business operations and services. The purchase price has not been disclosed. KKR will finance the investment through its Asia Pacific Infrastructure fund. The transaction is expected to be completed by Q4 2021.
‘Under the leadership of CEO Miyakawa, CTT has established itself as one of the top operators in Japan’s tank storage sector, and forged a strong culture of responsible safety and environment management. This is evident in its long relationships with its major customers spanning decades, and its initiative to report its ESG performance annually. We are excited to invest behind CTT and its growth, and look to build on its success by sharing KKR’s network and knowledge,’ says Taka Hirayama, a director on KKR’s Infrastructure team.