Shinto Holdings Co., Ltd. aims to enhance its market presence and procurement network by acquiring a 51% stake in Eishin Shoji Co., Ltd., a Kyoto-based recycling company.

Target Information

Shinto Holdings Co., Ltd. (TSE: 2776), a company engaged in metal and plastic recycling as well as real estate sectors, has announced its acquisition of Eishin Shoji Co., Ltd., a recycling enterprise located in Uji, Kyoto. This strategic move is aimed at consolidating its presence in the Kansai region and expanding its procurement network to enhance business performance.

Eishin Shoji specializes in the recycling of non-ferrous metals and iron scraps derived from electrical cables and radiators, supplying these materials to major electric cable manufacturers and refining companies. For the fiscal year ending March 2025, Eishin Shoji reported revenues of ¥18.1 billion, an operating profit of ¥262 million, and net assets totaling ¥317 million. As part of the acquisition process, Shinto Holdings will secure approximately 51% of Eishin Shoji's shares through stock allocation.

Industry Overview

In Japan, the recycling industry has grown significantly due to increasing environmental concerns and stricter regulations imposed on waste management. The government's commitment to a circular economy has resulted in favorable condit