Condotech Co., Ltd. plans to acquire Suzuho Co., Ltd. to enhance its construction materials capabilities and expand its market offerings in Japan.

Target Company Overview

Condotech Co., Ltd. (Ticker: 7438), a leading industrial material company, is set to acquire Suzuho Co., Ltd., a Tokyo-based manufacturer and seller of temporary enclosure materials used at construction sites. This acquisition is aimed at enhancing Condotech's production capabilities for construction-related materials. Suzuho not only manufactures these essential materials but also manages a diverse array of products for sale and rental from various other companies, thus expanding its market presence.

Suzuho recorded a revenue of 2.73 billion yen, an operating profit of 640 million yen, and a net asset value of 464 million yen for the fiscal year ending March 2025. The acquisition is expected to bolster Condotech's manufacturing and sales efforts in the construction sector, particularly through the expansion of rental services and other sales methods.

Industry Overview in Japan

The construction materials industry in Japan plays a critical role in the nation’s economy, facilitating the ongoing urban development and infrastructure improvement projects throughout the country. The sector has shown resilience despite various economic challenges, driven by g