August 10, 2018
Notice Regarding Partial Transfer of Business of Subsidiary Kurita Europe GmbH
Kurita Water Industries Ltd. (Head Office: Nakano-ku, Tokyo; President: Michiya Kadota; hereinafter "Kurita") announces that a meeting of its Board of Directors held on July 31, 2018 resolved to transfer the alumina compounds business(*1) of Kurita Europe GmbH (Head Office: Germany; Managing Director: Shingo Yamaga), a subsidiary of Kurita, to Blitz 17-630 AG (Germany; hereinafter "LIVIA"), a subsidiary of LIVIA Corporate Development SE. Kurita Europe GmbH and LIVIA entered into a business transfer agreement on August 3, 2018. The business transfer is scheduled to take place on September 30, 2018.
The alumina compounds business of Kurita Europe GmbH is a business which Kurita acquired with a water solutions business and a paper solutions business from BK Giulini GmbH in Germany and its affiliate in 2015. However, it is not a core business of the Kurita Group. Believing that selling this business will improve its future profitability, the Group has been examining the possibility of concluding a business transfer agreement and has recently reached an agreement with LIVIA.
With respect to the impact of this transfer on Kurita’s consolidated financial results, Kurita has posted the amount of estimated loss of 2,869 million yen associated with this transfer as an extraordinary loss (provision for loss on transfer of business) in its financial results for the first quarter of the fiscal year ending March 31, 2019. Kurita will keep its consolidated results forecasts for the fiscal year ending March 31, 2019 unchanged because the posting of a gain on the sale of investment securities is expected in or after the second quarter of the current fiscal year, as Kurita is currently proceeding with a review of its cross-shareholdings.
The Kurita Group is striving to promote growth investments and improve its profitability in a focused manner in its medium-term management plan "MVP-22 (Maximize Value Proposition 2022)," which has started in the current fiscal year. Kurita will continue to aim for further growth as a corporate group with a solid revenue base by optimizing its business portfolio while continuing to refine its business focus and allocate management resources to businesses with growth potential.
The business manufactures and sells alumina compounds. It has products such as inorganic coagulant for waste water treatment and.