[Cross-border M&A Deal Closed] Nisshin Kagaku Expands into Malaysia with First Overseas Acquisition

Nihon M&A Center Inc. (Headquarters: Chiyoda-ku, Tokyo; President: Naoki Takeuchi), a consolidated subsidiary of Nihon M&A Center Holdings Inc. (Headquarters: Chiyoda-ku, Tokyo; President: Suguru Miyake), has supported a cross-border M&A transaction between Nisshin Kagaku Co., Ltd. (Acquiring Company; Osaka City), a contract manufacturer of aerosols such as deodorants and antiperspirants as well as liquid cosmetics, and Bodibasixs Manufacturing Sdn. Bhd. (hereinafter "BSX"; Selling Company; Malaysia), an OEM manufacturer of skincare products.

【Case Interview】

URL: https://www.nihon-ma.co.jp/page/interview/nisshinkagaku/

M&A as an Option to Overcome "Domestic Market Limits"

Founded in 1970, Nisshin Kagaku has developed its core business around OEM manufacturing, primarily focusing on aerosol products and liquid cosmetics. As its products are consumer goods, the company viewed the future market contraction caused by Japan's declining population as a major management challenge. With many of its client companies looking toward overseas expansion, Nisshin Kagaku considered a full-scale entry into international markets. Targeting the ASEAN region, where the population continues to grow, the company moved forward with the acquisition of a Malaysian firm as its first-ever M&A deal.

A First M&A Executed in Unity with Financial Institutions and Intermediaries

As this case involved negotiations with an overseas company, there were phases requiring careful judgment regarding valuation and exchange rate fluctuations. Nisshin Kagaku collaborated with financial institutions and Nihon M&A Center to proceed with negotiations centered on net asset value at market price.

President Takada reflected, "It was beneficial that we didn't proceed alone, but rather as a single team, engaging in discussions with experts."

Following the acquisition in November 2023, Nisshin Kagaku immediately commenced the PMI (Post-Merger Integration) process. They established subcommittees for each department—including manufacturing, R&D (Research and Development), business development, accounting, and purchasing—to facilitate continuous information sharing and personnel exchange.

In the R&D field specifically, Nisshin Kagaku's formulations have already led to new customer acquisitions for BSX. Moving forward, the company plans to get the current operations on track while expanding within Malaysia and into neighboring countries.