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M&A and Subsidiary Changes6370Kurita Water Industries Ltd.Machinery

Notice Regarding Change in Consolidated Subsidiary (Share Transfer)

Kurita Water Industries, Ltd. has entered into an agreement to transfer all shares of its U.S. subsidiary, Pentagon Technologies Group, Inc., to AEQH20 GmbH, a subsidiary of a German corporate group. The transfer price is up to US$21 million, including additional consideration, and the transfer is scheduled for 30 June 2026.

Worth reading
62In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
21
Up to US$ millions
Wording
Conditional
How definitive the wording is.

This transaction

Share Transfers
CounterpartyAEQH20 GmbH
Disclosing companyKurita Water Industries Ltd.
Pentagon Technologies Group, Inc.Voting rights ownership percentageNumber of shares acquired 3,023,104.67 shares (number of shares transferred; number of voting rights not disclosed)

The voting-rights ratio is the share of the votes exercisable at a shareholders’ meeting that will be held after this transaction.

TimelineThe spacing between the points is proportional to the actual number of days.
Target company

Precision cleaning business, development of instruments for measuring surface particles on semiconductor manufacturing equipment, and cleanroom-related consulting services, among others

Location U.S.A.(Hayward, CA)Share capital US$108.202 millionDate of incorporation 13 October 1998
Net SalesUS$132.585 million (fiscal year ended March 2025)
Operating profitOperating loss of US$121.442 million (fiscal year ended March 2025)
Net income for the current fiscal yearNet loss of US$125.252 million (fiscal year ended March 2025)
Net assetsNegative net assets of US$983,000 (fiscal year ended March 2025)
Consideration and expenses
Acquisition priceUp to US$21 million (transfer price)
Type of ConsiderationCash (up to US$21 million as the transfer price)
Impact on Business Performance

For the impact of entering into this agreement on consolidated results for the fiscal year ending March 2026, please refer to the concurrently disclosed Notice Regarding Recognition of Impairment Loss and Revision of Full-Year Earnings Forecast.

Procedures and assumptions
Management structure after acquisitionThe company and the following 2 companies held by it are expected to come under AEQH20 GmbH. The trade names, representatives and treatment of employees are not disclosed.
This transaction
ItemDetails
Transaction nameShare Transfers
Counterparty nameAEQH20 GmbH
Name of the Subject CompanyPentagon Technologies Group, Inc.
Business Description of the Subject CompanyPrecision cleaning business, development of instruments for measuring surface particles on semiconductor manufacturing equipment, and cleanroom-related consulting services, among others
Location of the Subject CompanyU.S.A.(Hayward, CA)
Capital Stock of the Subject CompanyUS$108.202 million
Date of Establishment of the Subject Company13 October 1998
Net Sales of the Subject CompanyUS$132.585 million (fiscal year ended March 2025)
Operating Profit of the Subject CompanyOperating loss of US$121.442 million (fiscal year ended March 2025)
Net Income of the Subject CompanyNet loss of US$125.252 million (fiscal year ended March 2025)
Net Assets of the Subject CompanyNegative net assets of US$983,000 (fiscal year ended March 2025)
Acquisition priceUp to US$21 million (transfer price)
Type of ConsiderationCash (up to US$21 million as the transfer price)
Number of shares acquired3,023,104.67 shares (number of shares transferred; number of voting rights not disclosed)
Voting rights ownership percentageBefore 100% → after 0%
Impact on Business PerformanceFor the impact of entering into this agreement on consolidated results for the fiscal year ending March 2026, please refer to the concurrently disclosed Notice Regarding Recognition of Impairment Loss and Revision of Full-Year Earnings Forecast.
Date of board resolutionNot disclosed (management committee resolution date: 13 May 2026)
Contract Date13 May 2026
Execution Date / Effective Date30 June 2026 (scheduled)
Management structure after acquisitionThe company and the following 2 companies held by it are expected to come under AEQH20 GmbH. The trade names, representatives and treatment of employees are not disclosed.
Items this document does not state (12)
Expenses other than the acquisition priceMerger ratio/share exchange ratioTender offer priceMinimum number of shares to be purchasedTender offer periodFunding arrangementsGoodwill amountAmount of extraordinary income (loss)Valuation methodologyIndependent valuation institutionSpecial CommitteeConditions Precedent to Execution

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

As part of efforts to optimize its business portfolio and improve capital efficiency under its medium-term management plan, the company has been pursuing structural reform of its overseas precision cleaning business. After comprehensively considering the future growth potential and profitability of Pentagon Technologies Group, Inc., the company determined that enabling further growth under an owner that can contribute to enhancing the company's value would be the optimal course of action.

How to read this page

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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding Change in Consolidated Subsidiary (Share Transfer) | Kurita Water Industries Ltd. (6370) timely disclosure | Komori