JS Group to Acquire Remaining All Share of Sun Wave

JS Group Corporation announced on Monday the firm acquires all remaining share of Sun Wave Corporation, in which JS Group has 29.98% share, through share exchange on April 1, 2010. After the transaction, JS Group will sell 20% share of Sun Wave to Nisshin Steel, which has 20.02% share in Sun Wave, to keep Sun Wave equity method affiliate. JS Group and the operational company, INAX Corporation tries to improve the profitability in housing equipment market through the synergy with Sun Wave.

JS Group’s president Masahiro Sugino said at press conference on Monday the group tries to develop renovation market with the stronger business base by acquiring the strong partner with competitiveness in kitchen and water related equipment. Sun Wave’s president Shonosuke Oda said the firm tries to makes itself strong and maximizes the brand power in JS Group when the market condition gets severer for single product maker.

JS Group signed alliance agreement with Sun Wave in June to subscribe Sun Wave’s new share. However, the domestic market gets worse in new housing construction and renovation. They decided further cooperation through the combination. They seek joint marketing along with studied products development, materials procurement, production, logistics, installation and after sales service.

Sun Wave delists the stock in March end of 2010. JS Group offers 0.19 share of JS Group for each Sun Wave share. Nisshin Steel will keep supplying steel and technical support to Sun Wave as partial shareholder.