#Japan #Osaka #Specialty Chemicals #Sogo Corporation #A&L Japan

Sogo Co., Ltd. Acquires A&L Japan and Expands its Business Horizons

In a strategic move poised to reshape the landscape of the specialty chemicals sector, Sogo Co., Ltd. (Sogo) has officially signed a stock purchase agreement to acquire shares of A&L Japan Co., Ltd. (A&L Japan), a leading producer and developer of Styrene-Butadiene Rubber (SBR) latex and Acrylonitrile-Butadiene-Styrene (ABS) resin. This acquisition, involving three prominent companies - Sogo, Sumitomo Chemical Co., Ltd. (Sumitomo) and Mitsui Chemicals, Inc. (Mitsui) - marks an important milestone in Sogo's growth strategy.

The acquisition is set to be finalized by July 2025, with Sogo expected to secure 66.5% ownership of A&L Japan, thus transforming it into a consolidated subsidiary. This transition is anticipated to unlock further potential for both companies, reinforcing Sogo's commitment to enhancing its presence in the specialty chemicals market.

The Significance of A&L Japan in the Chemical Landscape

A&L Japan has established itself as a formidable player in the chemical industry, specializing in the production of high-quality SBR latex used for lithium-ion battery (LiB) binders and SBR latex for paper processing. With a robust supply chain in Japan, the company is recognized globally for its technological prowess and commitment to innovation. Notably, in the ABS resin segment, A&L Japan boasts a stable customer base both domestically and internationally, which provides Sogo with immediate access to a wealth of business opportunities.

Sumitomo Chemical, while re-evaluating its business portfolio under the slogan Leap Beyond - Returning to Growth Trajectory, acknowledges the importance of sustaining A&L Japan's growth. The acquisition by Sogo is viewed favorably, given its extensive experience and expertise in the LiB sector which aligns with the needs of A&L Japan. This synergy is expected to elevate A&L Japan's corporate value significantly.

Mitsui Chemicals, through its long-term management plan VISION 2030, places great emphasis on transforming its business portfolio and aims to evolve into a true global specialty chemicals company. By leveraging A&L Japan's strengths, Mitsui anticipates realizing synergistic effects through collaboration with Sogo, further enhancing A&L Japan's value proposition in the market.

The Strategic Importance of Specialty Chemicals

For Sogo, this acquisition is part of a broader initiative to strengthen its growth foundations, as outlined in its Mid-term Management Plan 2026, which aims for a twofold increase in corporate value. The strategic entry into A&L Japan signifies Sogo's dedication to the energy and materials solutions sector. With a network of around 5,000 customers globally, Sogo is well-positioned to explore various chemical trades, from basic chemicals such as methanol to functional materials and inorganic chemicals like industrial salts and rare earth elements.

As part of its growth strategy, Sogo emphasizes the creation of next-generation businesses that are aligned with a low-carbon and environmentally conscious society. With A&L Japan's integration, Sogo anticipates robust synergies that will strengthen its manufacturing capabilities and overall profitability.

Looking ahead, Sogo intends to leverage its global customer base, logistics network, and talented workforce to enhance A&L Japan's capabilities further. Sogo's commitment to expanding its footprint in the electric vehicle (EV) and energy storage markets remains unwavering as it embarks on this new chapter of growth and innovation.

A&L Japan Company Overview

• - Company Name: A&L Japan Co., Ltd.
• - Established: July 1, 1999
• - Location: Sumitomo Building, 4-5-33 Kitahama, Chuo-ku, Osaka City
• - Capital: 6 billion yen (85% Sumitomo Chemical, 15% Mitsui Chemical)
• - Future Capital Structure After Acquisition: 66.5% Sogo, 33.5% Sumitomo
• - CEO: Satoshi Sakamoto, President and Representative Director
• - Core Business: Manufacturing, selling, and researching SBR latex and ABS resin, among other products.