Kurimoto to absorb subsidiary Sankyo Machinery for efficiency gains

Kurimoto, Ltd. announced it will absorb its wholly owned subsidiary, Sankyo Machinery, Ltd., through an absorption-type merger, effective April 1, 2026. Kurimoto acquired all shares of Sankyo Machinery in April 2024. The merger aims to integrate Sankyo Machinery's asphalt and concrete crushing plant business, which possesses key technologies for recycled aggregate, into Kurimoto's operations. This move will concentrate management resources, improve efficiency, and strengthen profitability.

The merger is classified as a simplified merger for Kurimoto and a short-form merger for Sankyo Machinery, meaning shareholder approval will not be sought by either company. Kurimoto will be the surviving entity, with no changes to its name, address, representative, business description, capital, or fiscal year-end. Sankyo Machinery will be dissolved.

As Sankyo Machinery is a wholly owned subsidiary, no shares or other consideration will be allotted as part of the merger. Kurimoto's capital is JPY31,186 million, with 63,992,450 shares outstanding. Sankyo Machinery has JPY26 million in capital and 52,000 shares outstanding, all held by Kurimoto. The impact of the merger on Kurimoto’s consolidated financial results is expected to be immaterial.