Fukuda Denshi to absorb technical service subsidiary to streamline operations

Fukuda Denshi announced its decision on November 28, 2025, to absorb its wholly owned subsidiary, Fukuda Denshi Technical Service, effective April 1, 2026. This absorption-type merger aims to streamline operations and strengthen internal processes, aligning with the group's manufacturing reform strategy. This strategy focuses on in-house production, SCM optimization, quality improvement, and development process optimization.

As a wholly owned subsidiary, the merger will not involve any allocation of shares or other monetary compensation. Fukuda Denshi, the surviving company, reported 181,652 million yen in net assets and 221,321 million yen in total assets for the fiscal year ended March 2025 (consolidated), with sales of 139,007 million yen and an operating profit of 25,874 million yen.

Fukuda Denshi Technical Service, the dissolved company, reported 580 million yen in net assets and 843 million yen in total assets, with sales of 932 million yen and an operating profit of 25 million yen for the fiscal year ended March 2025 (non-consolidated). The merger is expected to have a minor impact on Fukuda Denshi's consolidated performance.