#Japan #Osaka #Yamatane #HHES #Kyokuto

Yamatane’s Strategic Move into the Archive Business

In a significant development in the logistics and archive business sectors, Yamatane Co., Ltd. has announced plans to acquire the archive operations of Hankyu Hanshin Estate Service, Inc. (HHES) and its wholly-owned subsidiary, Kyokuto Co., Ltd. This move is part of Yamatane’s strategy to bolster its services and establish a stronger presence in the competitive archive market.

On April 17, 2025, the board of directors at Yamatane approved the acquisition, which involves entering into a stock transfer agreement with HHES dated April 22, 2025. With this acquisition, HHES will also set up a new subsidiary called Yamatane Document Management Co., Ltd., which will take over the archive business through a company split. This new entity will be wholly owned by Yamatane, thus integrating the archive services which include document storage, digitization, and secure disposal of confidential documents.

Rationale Behind the Acquisition

Yamatane operates four key business sectors: logistics, food, information, and real estate, with a particular focus on logistics in the Kanto and Kansai regions. The company has identified the archive business as a crucial area for future growth, and this acquisition is tailored to enhance its capabilities in document management and consulting.

Hankyu Hanshin Estate Service has successfully expanded its archive-related services in the Kansai region, operating with a wealth of experience, technological know-how, and skilled personnel in document management. The integration of Kyokuto, which specializes in document management consulting and electronic document processing, further strengthens Yamatane’s positioning in this area.

The acquisition not only represents a strategic expansion but also allows Yamatane to utilize human resources more effectively and leverage existing facilities, fostering a more extensive archive business in both the Kanto and Kansai areas. Yamatane aims to increase profitability and enhance its competitive edge through this acquisition.

Overview of the New Subsidiary

The newly formed subsidiary, Yamatane Document Management Co., Ltd., is set to be established on April 30, 2025, at 1-14-30 Kawamata, Higashi-Osaka City. Here are the details about the new company:

• - Company Name: Yamatane Document Management Co., Ltd.
• - Location: 1-14-30 Kawamata, Higashi-Osaka City, Osaka Prefecture
• - CEO: Hiroshi Hasegawa
• - Business Focus: Archive operations
• - Capital: 50 million yen
• - Ownership: 100% owned by HHES

Plans for Kyokuto as a Subsidiary

Kyokuto, which focuses on consulting and electronic document processing, will become a wholly owned subsidiary of the new entity. Established in 1969, Kyokuto has consistently reported stable performance over the years. Here are some financial highlights:

• - Latest Financials:

- Total Assets: 319 million yen (2024)
- Revenue: 305 million yen (2024)
- Net Profit: 14 million yen (2024)

The Acquisition Timeline

The acquisition process is set to unfold as follows:

• - Board Resolution: April 17, 2025
• - Contract Signing: April 22, 2025
• - New Company Establishment: April 30, 2025 (expected)
• - Effective Date of Company Split: July 1, 2025 (expected)
• - Stock Transfer Execution Date: July 1, 2025 (expected)

Future Implications

As the acquisition progresses, Yamatane is currently evaluating its potential impact on consolidated financial results, specifically concerning goodwill and projections for the 2026 fiscal year. Detailed assessments will be shared promptly upon conclusion. This acquisition marks a pivotal step for Yamatane, as it aligns with the company’s vision to elevate its operational footprint within Japan's logistics and archive services landscape.

For further inquiries, please contact:
Yamatane Co., Ltd. Public Relations Department
TEL: 03-3820-1116 Email: kikaku@yamatane.co.jp