Earth Corporation to absorb Bathclin in simplified merger

Earth Corporation (TSE: 4985) announced the planned absorption of its wholly-owned subsidiary, Bathclin Corporation, in a simplified merger effective January 1, 2026. The move, approved by the board on March 11, 2025, aims to streamline group management and optimize resource allocation, aligning with the company's mid-term business plan, "Act For SMILE COMPASS 2026." As a simplified absorption-type merger, no new shares will be issued, and shareholder meetings for approval will not be held. Bathclin will dissolve as a result of the merger. Earth Corporation anticipates the merger will have a minimal impact on its consolidated financial results for the fiscal year ending December 2025, maintaining its forecast of ¥175 billion in net sales, ¥6.5 billion in operating profit, and ¥7.1 billion in ordinary profit.