Seiren to acquire Unitika's textile business in company split

Seiren Co., Ltd. (TSE:3569) has announced a memorandum of understanding with UNITIKA LTD. to acquire its textile business. This acquisition will be executed through a company split, creating a new company to house Unitika's staple fiber, high strength polyester yarn, polyester polymerization, filament, and spun bond businesses operated at the Okazaki Plant. Seiren aims to revitalize the business by implementing structural reforms, leveraging its past experiences, and pursuing synergies with existing Group businesses, including exploring chemical recycling and contributing to social issues such as ESG and carbon neutrality. The company expects the impact on its business performance will be minor, funded by its own funds or borrowings. The acquisition is expected to conclude by the end of December 2025, with further details on the new company and acquisition price to be disclosed as soon as finalized.