February 2, 2015
Kurita Completes Acquisition of German-Based Water Solutions, Paper Solutions and Alumina Compounds Businesses of BK Giulini
Kurita Water Industries Ltd. ("Kurita") announced today that on January 31, Kurita completed the procedures for the acquisition of the Water Solutions, Paper Solutions and Alumina Compounds businesses of BK Giulini GmbH of Germany and its affiliates ("BKG"), and Kurita Europe APW GmbH ("KEAG"), an overseas subsidiary established in Ludwigshafen, Germany, has commenced operations.
In October last year, Kurita, BKG, and its ultimate parent company, Israel Chemicals Limited, entered into an agreement to acquire the businesses. Subsequently, Kurita has performed the procedures under the agreement. Having met the closing conditions, including antitrust clearance, and completed preparations for business operations, Kurita has completed the acquisition at a cost of 237 million euros (32.1 billion yen). Kurita is continuing to perform procedures for the acquisition of production sites in China.
As an overseas subsidiary with production sites in Germany and Turkey, an R&D facility in Germany, and sales offices in nine countries, mainly in Europe, KEAG will manufacture, develop, and market water treatment chemicals, paper chemicals, and alumina compounds.
The acquisition will enable Kurita to strengthen its overseas business platform mainly in Europe. Kurita expects to generate synergy, with its technologies and products and those of the acquired businesses complementing each other. Sales overseas will account for 28% (compared with 19% in FY2013) of the Group’s total sales, and sales in Europe are expected to account for 10% (compared with 1% in FY2013) of overseas sales.
Kurita and the acquired businesses will sell each other’s products to boost combined sales and will combine each other’s technologies to enhance the Group’s product capabilities and generate synergy quickly through the development of new products and services.
The Group will enhance its overseas business platform and seek to achieve rapid growth as a corporate group to survive international competition. The Group will also expand its comprehensive solutions for water treatment.