JS Group to Acquire Shin Nikkei for 20 Billion Yen

JS Group and Nippon Light Metal announced on Tuesday JS Group purchases all share of Shin Nikkei, which is Nippon Light Metal group’s sash maker, on April 1 for 20 billion yen. JS Group purchases the all shares for 654,000 yen while the firm undertakes 20 billion yen of the debt.

They reached agreement for the transaction in July 2009 and continued the negotiation. JS Group’s chairman Yoichiro Ushioda said at the press conference on Tuesday he expects the sash business can improve the productivity by combining with JS Group’s Tostem. JS Group’s president Masahiro Sugino said after the acquisition, the group keeps Shin Nikkei brand while the group tries to integrate the specification with Tostem.

Nippon Light Metal’s president Takashi Ishiyama said the firm decided to sell Shin Nikkei to secure the employment and the brand. He said the company will post operating loss with 110-120 billion yen of annual sales for fiscal 2009 ending March 2010 due to slow demand.