We hereby announce that Belgium-headquartered AR Metallizing N.V. (hereinafter, “ARM”), a consolidated subsidiary in the Industrial Materials Business Unit of Nissha Co., Ltd. (hereinafter, “the Company”), has concluded a share purchase agreement with the shareholders of Eurofoil Paper Coating GmbH (hereinafter, “Eurofoil”), a German manufacturer of metallized paper, thus making it a subsidiary of ARM. The acquisition is subject to approval of the German Cartel authorities and scheduled to be completed towards the end of November 2019.

ARM, which is the acquiring entity in this transaction, became a member of the Nissha Group in 2015, and is the world’s largest supplier of metallized paper (special paper on the surface of which is formed a metal layer, which brings decorative effects or functional characteristics). ARM’s metallized paper has superior printability and recyclability and is widely used in such applications as packaging for beverage, food, and daily goods. The need for materials with reduced environmental impact to substitute for traditional plastic packaging materials is rising globally, and we expect to see further expansion in business opportunities going forward.
Like ARM, Eurofoil is a manufacturer of metallized paper. In addition to having sales channels and production capacity for food and cigarette packaging in the European region, its proprietary processing technology, in areas such as coating and lamination, complements that of ARM. In addition to increasing its share of the metallized paper market in the European region, this acquisition will allow ARM to expedite the development of new products by utilizing Eurofoil’s processing technology.

The Company has positioned metallized paper, with its superior environmental characteristics, as a product to contribute to “Sustainable Packaging Materials,” which has been designated a core market in the Sixth Medium-Term Business Plan*. By further broadening the product portfolio aimed at this market, we aim to realize a full and enriching life for everybody, in accordance with our corporate philosophy.

*The Company has been currently operating the Sixth Medium-term Business Plan (three-year plan) centering on the growth by reorganizing and optimizing its business portfolio. We have set the markets of mobility (automotive), medical devices and sustainable packaging materials as our focused markets, in addition to the mainstay consumer electronics (IT), and aim to develop well-balanced business bases and enhance our corporate value by implementing global based growth strategy.

The impact of this transaction on the Company’s consolidated results for the current fiscal year is expected to be negligible. Going forward, if revisions to business forecasts or the announcement of other matters become necessary, we will make prompt disclosure of the same.