Sato Holdings Acquires Sanei Kogyo Co., Ltd., a Facilities Construction Company in Okayama City, as a Subsidiary

Sato Holdings announced on April 27, 2026, the acquisition of all shares of Sanei Kogyo Co., Ltd., a facilities construction company in Okayama City, effective April 3, 2026, making it a subsidiary. This strategic move aims to address the severe shortage of skilled workers in the construction industry and internalize facilities construction within the group.
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To Whom It May Concern:

April 27, 2026

Sato Holdings Co., Ltd.

Sato Holdings Co., Ltd. (Head Office: Shōō-chō, Katsuta-gun, Okayama Prefecture; Representative Director: Noriyoshi Sato; hereinafter "Sato Holdings") is pleased to announce that it has acquired all shares of Sanei Kogyo Co., Ltd. (Representative Director: Yoshifumi Fujiwara; hereinafter "Sanei Kogyo"), a facilities construction company in Okayama City, effective April 3, 2026, making it a subsidiary.

Background and Purpose of Share Acquisition

Currently, the construction industry as a whole is facing a serious shortage of skilled workers, and the facilities sector, in particular, is an extremely important area directly linked to the quality, delivery time, and cost of construction. Through this M&A, Sato Holdings will promote the internalization of facilities construction, which its group companies, including Sato Kensetsu Co., Ltd., have previously relied on external parties for.

Through this "strengthening of the foundation," we aim to create the following value:

■ Stabilization of Construction Capabilities and Quality Improvement

By establishing a unified construction system within the group, we will reduce the risk of construction delays due to a shortage of facilities contractors and provide more stable and high-quality construction.

■ Promotion of FM (Facility Management) Business

We will evolve from the conventional "construct and complete" model to a business that "stays close to the building's lifecycle," consistently handling inspection, repair, renovation, and remodeling within the group.

■ Efficiency of On-site Operations

Through close coordination enabled by internalization, we will streamline on-site adjustment operations and achieve smooth project management.

Future Outlook

Sanei Kogyo's on-site engineers are expected to continue their work. Regarding the management system, Sato Holdings will dispatch new executives and partially replace the current management team to accelerate decision-making within the group and strengthen governance. Sato Holdings will respect the technical capabilities and achievements that Sanei Kogyo has cultivated over many years while gradually maximizing synergies as a group.

Through this initiative, Sato Holdings and its group companies aim to transform themselves from merely "strengthening construction capabilities" to becoming "partners who continuously provide value" to their customers.

Company Profile

[Sanei Kogyo Co., Ltd.]

Since its establishment in 1966, Sanei Kogyo has been engaged in water supply and drainage sanitation facilities and various piping works, mainly in the southern part of Okayama Prefecture. With reliable technical capabilities cultivated over more than 50 years, the company supports the comfort of spaces where people gather and contributes to the local community.

Official website: https://sanei.in/

[Sato Holdings Co., Ltd.]

Sato Holdings Co., Ltd. is the holding company of SATO GROUP, with Sato Kensetsu Co., Ltd. at its core. SATO GROUP handles all businesses related to "town building" and "home building," including housing, construction, civil engineering, real estate, and restaurant businesses, mainly in Okayama Prefecture. The group's vision is "Dreams for People and Towns," aiming to be a company that is always needed by customers and society, and where employees can work with pride. SATO GROUP is composed of various corporations and operating companies, growing with the support of the local community. In addition to construction and civil engineering-related businesses such as Sato Kensetsu Co., Ltd., Sato Saiseki Co., Ltd., Sato Saiseki Hanbai Co., Ltd., and Takei Co., Ltd., social welfare corporation Fujinobukai is also part of SATO GROUP.

Sato Kensetsu official website: https://www.satoukensetsu.co.jp/