Japan’s flat glass manufacturer Nippon Sheet Glass (NSG Group) is set to be acquired by private equity firm Apollo Funds in a $3.7 billion (JPY 590 billion) transaction, marking one of the largest deals in the global glass industry this year.

NSG, known for its architectural, automotive, and solar glass products, has faced financial challenges stemming from its 2006 acquisition of Pilkington for £2.2 billion. The company plans to use the proceeds from the Apollo deal to pay down JPY 189 billion of debt associated with Pilkington.

As part of the agreement, Apollo will also invest an additional JPY 140 billion sourced from major Japanese banks to help NSG repay remaining obligations. In parallel, NSG’s principal lenders will convert a portion of their outstanding loans into equity, strengthening the company’s balance sheet and providing long-term financial stability.

Tetsuji Okamoto, Lead Partner, Asia Pacific Private Equity at Apollo, commented:
“NSG Group is a foundational player in the global glass industry, and this tailored financing reflects the collective commitment of stakeholders across Japan to the long-term success of NSG Group.”

Munehiro Hosonuma, NSG’s Representative Executive Officer, President and CEO, added:
“This partnership with Apollo Funds and our principal lenders enables us to reinforce our financial position, invest in our people and technology, and lead the next era of glass manufacturing. With Apollo’s deep expertise in manufacturing and long-term partnership, we are prepared to continue delivering for our customers while building a stronger, more resilient enterprise.”

Apollo highlighted NSG’s diversified manufacturing platform, long-standing industry heritage, and deep customer relationships as key assets that position the company to capture growing demand in energy-efficient architectural glass, automotive glazing, and solar products.