Announcement Regarding the Acquisition (Group Integration) of Best Lines Co., Ltd. Through the Execution of a Share Transfer Agreement

Nishikawa Co., Ltd. (Head Office: Chuo-ku, Tokyo; President & COO: Masahiko Takeuchi; hereinafter "nishikawa") announces that it has entered into a share transfer agreement with Maturity Co., Ltd. (Head Office: Ueda City, Nagano Prefecture; Representative Director: Tadahiko Suigawa; hereinafter "Maturity") to acquire all shares of Best Lines Co., Ltd. (Head Office: Nakano-ku, Tokyo; hereinafter "Best Lines"), a subsidiary of Maturity, and has thus made Best Lines a subsidiary.

Following this transaction, Best Lines will become a member of the nishikawa group and aim for further business expansion under a new management structure.

1. Background and Purpose of Share Acquisition (M&A)

Since its founding in 1566, nishikawa has strived for over 460 years to support people's health through "sleep" by providing bedding and sleep-related products. Currently, we are developing innovative products such as [AIR] and "Healthyon," and also offering solutions that respond to the diversifying needs of modern sleep, such as producing the consulting-style custom pillow specialty store "PILLOW STAND."

The target company, Best Lines, has developed multiple "PILLOW STAND" stores, primarily in the Tokyo metropolitan area, providing high-quality counseling and custom-made pillows tailored to each customer. Their achievements are extremely high, and they possess outstanding on-site operational capabilities and know-how in building customer engagement, as evidenced by numerous awards in sales contests where nishikawa chain stores nationwide compete.

The main purpose of this share acquisition is to acquire the "PILLOW STAND" stores operated by Best Lines and to rapidly absorb the "store operation and customer service know-how" cultivated on the front lines by the company. By seamlessly integrating nishikawa's accumulated product development capabilities, research data, and backbone management resources with Best Lines' strong on-site operational know-how and customer touchpoints, we have determined that we can maximize the value proposition in our core business and establish a system to deliver optimal sleep environments to more customers.

2. Future Outlook and Group Synergy

(1) Absorption of Store Operation Know-how and Strengthening of PILLOW STAND Business

Nishikawa group will share and deploy the high-quality counseling techniques and store management methods held by Best Lines throughout the entire nishikawa group. This will further enhance the service level in existing and future new stores, solidifying our competitiveness in the custom bedding market.

(2) Optimization of Management Foundation and Rapid Business Development

By leveraging the capital and business infrastructure of the nishikawa group, we will strongly support faster decision-making and stable business operations in Best Lines' store expansion. We will selectively and intensively invest the resources of both companies in the sleep solutions domain, which is our core business, to achieve sustainable growth.

3. Overview of Companies Involved

【Acquiring Company (Our Company)】

Company Name: Nishikawa Co., Ltd.

Representative: Chairman of the Board, CEO: Yasuaki Nishikawa

President & COO: Masahiko Takeuchi

Head Office Location: 8-8 Nihonbashi Tomizawa-cho, Chuo-ku, Tokyo

Main Business Activities: Manufacturing, processing, buying and selling, import/export of textile products (bedding, sleep-related products, towels, interior goods, etc.)

URL: https://www.nishikawa1566.com/

【Target Company (Acquired Subsidiary)】

Company Name: Best Lines Co., Ltd.

Head Office Location: 7F, 4-2-12 Nakano, Nakano-ku, Tokyo 164-0001

Main Business Activities: Operation of custom pillow specialty store "PILLOW STAND," and related store operations and e-commerce business.

URL: https://bl-hypnos.com/

【Selling Company (Original Parent Company)】

Company Name: Maturity Co., Ltd.

Representative: Representative Director: Tadahiko Suigawa

Head Office Location: 2-4-72 Tenjin, Ueda City, Nagano Prefecture

Main Business Activities: Restaurant operation, franchise development, etc.

URL: https://maturity.co.jp/