 August
22, 2006 Restructuring
of the Nissui Frozen Food Storing Business
Please be informed that Nippon Suisan Kaisha, Ltd. (Naoya
Kakizoe, President & CEO) has decided to restructure its frozen food storing
business and its wholly-owned subsidiaries Tobu Reizo Shokuhin Co., Ltd.
and Seibu Reizo Shokuhin Co., Ltd.
The organizational restructuring targeted at the Nissui
Group's frozen food storing business comes as part of the Group's basic
management strategy to "improve the profitability of core businesses" and
its key strategy to "foster synergy and leveraging* in Group management
strategy" under the medium-term management plan (from April 1, 2006 to
March 31, 2012) dubbed the New TGL (Toward Global Links) Plan.
As a result of the restructuring, the Group's frozen food
storing functions will be merged and consolidated, enabling more efficient
usage of each company's capabilities and know-how and the achievement
of low-cost operations. Through the ensuing increase in competitiveness
and efforts to broaden the customer base by acquiring regional customers
as well as those customers operating over wide areas, Nissui aims to expand
and stabilize earnings from the business.
Below is a more detailed overview and schedule of the restructuring.
| 1. Content of Organizational Restructur |
| |
(1) |
Merger of Seibu Reizo Shokuhin Co., Ltd. and Tobu Reizo Shokuhin
Co., Ltd. into Tobu Reizo Shokuhin Co., Ltd. |
| |
(2) |
Corporate spin-off of Nissui's frozen food storing business to Tobu
Reizo Shokuhin Co., Ltd. |
| |
(3) |
Allocation of all Tobu Reizo Shokuhin Co., Ltd. shares to the parent
company, Nissui, in conjunction with the merger and corporate spin-off. |
| 2. Scheduled Merger and Corporate Spin-off Dates |
| |
• |
Board of Directors Meeting for approval of the merger contract and
corporate spin-off contract November, 2006 |
| |
• |
Date of merger and corporate spin-off April 1, 2007 |
| |
| * |
Synergy and leveraging are methods of raising management
synergy and ROE (Return on Equity). |
| * |
Please see below for an overview of each of the companies
concerned. |
| * |
Data |
| Overview of Companies Concerned (as of March
31, 2006) |
|
|
Nippon Suisan Kaisha, Ltd. |
Tobu Reizo Shokuhin Co., Ltd. |
Seibu Reizo Shokuhin Co., Ltd. |
|
|
Marine products |
Frozen food storing |
Frozen food storing |
| (3) |
Date of
establishment |
|
March 31, 1943 |
August 10, 1979 |
April 28, 1978 |
|
|
2-6-2 Otemachi, Chiyoda-ku, Tokyo |
559-6 Kitano-machi, Hachioji-shi, Tokyo |
6-10-7 Hakozaki-futo, Higashi-ku, Fukuoka-shi, Fukuoka |
|
|
Naoya Kakizoe |
Jiro Mizukami |
Tadanori Isayama |
|
|
23,729,000,000 yen |
124,000,000 yen |
450,000,000 yen |
| (7) |
Number of
warehouses and
facility tons |
|
6 frozen food warehouses 119,000 facility tons |
5 frozen food warehouses 97,000 facility tons |
6 frozen food warehouses 90,000 facility tons |
|
|
Year ended March 31, 2006 |
Year ended March 31, 2006 |
Year ended March 31, 2006 |
|
|
331,771,000,000 yen |
4,694,000,000 yen |
3,462,000,000 yen |
|
