Mitsui & Co. and Nomura Group agreed to acquire 100% of New Forests Pty. Ltd., a Sydney-based manager of real assets and natural capital strategies with A$7.8 billion ($5.5 billion) in assets under management, according to a New Forests news release Friday.
Terms of the deal weren't disclosed.
A New Forests spokeswoman said under the agreement, Mitsui will raise its stake in the company to 49% from the initial 23% stake it acquired in 2016 while Nomura will acquire a 41% stake. The two Japanese companies will set aside about 10% of the shares to be distributed over time to New Forests employees.
The news release said Mitsui and Nomura will "provide capital to support New Forests' strategic growth initiatives and the global expansion of its investment platform… New Forests will leverage Nomura's global distribution network" across Japan and more broadly in Asia.
The agreement calls for David Brand, New Forests' founder, CEO and chairman, to remain with the company through June 30, 2025, focusing on strategic initiatives and growth opportunities.
Hiroshi Kakiuchi, managing officer and chief operating officer of Mitsui's performance materials business unit, in the news release said his company's topped-up investment in New Forests "is part of our sustainability strategy to invest in companies who are at the forefront of climate change mitigation."
New Forests managers a diversified 2.7-million-acre portfolio of "sustainable timber plantations and conservation areas, carbon and conservation finance projects, agriculture, timber processing and infrastructure assets."