Seiwa Holdings Inc. Completes Business Succession for Oba Painting Industry Co., Ltd.

Seiwa Holdings Inc. (Headquarters: Nagoya City, Aichi Prefecture, Representative Director: Yuta Nomiyama, hereinafter "the Company"), a business succession platform specializing in the manufacturing industry that continuously conducts M&A for SMEs lacking successors and enhances value through its unique mechanisms, has completed the business succession of Oba Painting Industry Co., Ltd. (Headquarters: Hamamatsu City, Shizuoka Prefecture, Representative Director: Ryoichi Oba, hereinafter "Oba Painting Industry").

Oba Painting Industry Co., Ltd. (Factory: Fukuroi City, Shizuoka Prefecture)

Background and Objectives

One of the main businesses of our group is surface treatment of metal products, primarily cation electrodeposition coating and electroplating, supplying products to a wide range of fields such as semiconductor manufacturing equipment, automobiles, and machine tools.

Oba Painting Industry Co., Ltd., based in Shizuoka Prefecture, is a specialized manufacturer of metal product painting and assembly that handles a variety of painting technologies in-house, including cation electrodeposition coating, electrostatic coating, powder coating, and heat-resistant coating. While the company has a stable customer base for four-wheel, two-wheel, home appliance, and general-purpose parts, it faced the challenge of lacking a successor. Under our group's business succession platform, we will inherit its technology and employment, aiming for the continuation and further development of its business.

Expected Synergies

By welcoming Oba Painting Industry into our group, we anticipate the following synergies:

Cation electrodeposition coating, like electroplating, is a surface treatment technology that utilizes electricity. There are many commonalities in quality control and production management. By integrating the company into our group, we can share improvement know-how between both businesses, enhancing technical capabilities and profitability.

By combining electro-galvanizing, which protects iron through sacrificial corrosion, with cation coating, which blocks water and oxygen, a double anti-corrosion structure can be realized. This is expected to improve anti-corrosion performance in fields such as automotive parts. Furthermore, by establishing a system that can handle everything from plating to cation electrodeposition coating, we can also meet customer needs for integrated orders.

Regarding paints, materials, etc., including cation electrodeposition coating, there is potential for volume discounts through joint purchasing by the group, leading to improved profitability by reducing procurement costs.

Fourth, our group has three cation electrodeposition coating factories in the Kanto region and four electroplating factories in the Chubu region. With the addition of Oba Painting Industry, located between these two regions, it will be easier to provide services spanning Kanto and Chubu, expanding our sales area. Additionally, processing can be done at the factory closest to the user, shortening transportation distances and reducing logistics costs. Currently, cation electrodeposition coating projects in the Chubu region are handled by factories in the Kanto region, so utilizing Oba Painting Industry is expected to significantly reduce transportation costs.

Overview of Oba Painting Industry Co., Ltd.

(1) Name: Oba Painting Industry Co., Ltd.

(2) Location: Headquarters: 3-12-14 Nakajima, Chuo-ku, Hamamatsu City, Shizuoka Prefecture Factory: 173-1 Kamiyamari, Fukuroi City, Shizuoka Prefecture

(3) Representative's Title and Name: Representative Director, Ryoichi Oba

(4) Business Description: Painting and assembly of metal products (Cation electrodeposition coating, electrostatic coating, powder coating, heat-resistant coating, etc.)

(5) Capital: 12 million yen

(6) Establishment Date: August 1958

Overview of Seiwa Holdings Inc.

[Company Name] Seiwa Holdings Inc.

[Website] https://seiwaholdings.co.jp/

[Address] 1-8-11 Nishiki, Naka-ku, Nagoya City, Aichi Prefecture 460-0003

[Representative Director] Yuta Nomiyama [Business Description] Promotion of business succession in the manufacturing industry Group management through platformization

Books Published by Representative Director Yuta Nomiyama "Textbook for Business Succession to Avoid Killing Your Company" https://www.amazon.co.jp/dp/486663054X

Information on Seiwa Holdings Group Companies

Seiwa Kogyo Co., Ltd. (Welding and finishing) https://seiwa04.com/

Toeicoating Co., Ltd. (Electro-galvanizing processing) https://toeicoating.co.jp/

Kohseisangyo Co., Ltd. (Design to installation of steel structures, sales of various industrial machinery, etc.) https://kohseisangyo.jp/

Sanyo Denko Co., Ltd. (Manufacturing of wires and cables) http://www.sanyo-denko.co.jp/

Mie Kogyo Co., Ltd. (Vacuum rubber molding machine manufacturer) https://mie-kogyo.co.jp/

KK Hirano Seisakusho (Can manufacturing, welding assembly) http://www.kk-hirano.co.jp/

Tamakako Co., Ltd. (Surface treatment processing by cation electrodeposition coating) https://www.tamakako.co.jp/

Kaken Genex Co., Ltd. (Manufacturing of molding assist equipment and bio-related equipment) https://www.kakengeneqs.co.jp/

Nihon Keiki Co., Ltd. (Liquid level gauge, sight glass manufacturer) https://www.nihonkeiki.com/

Kaishin Co., Ltd. (Manufacturing of transparent plastic cases) https://www.k-kaishin.co.jp/

Kanaya Painting Industry Co., Ltd. (Surface treatment processing by cation electrodeposition coating) https://www.kanayatoso.co.jp/

Fuji Plating Industry Co., Ltd. (Plating processing for semiconductor manufacturing equipment parts and machine tool parts) https://www.fuji-mk.jp/

And others. We have multiple companies mainly in the Kanto, Chubu, and Kansai regions.