Watts Co., Ltd. (TSE:2735) entered into an a basic agreement to acquire Ontsu F. Retail Co., Ltd. and Nippan Co., Ltd. from ONTSU Co.,Ltd. (TSE:7647) on July 12, 2021. Watts Co., Ltd. entered into an a share transfer agreement to acquire Ontsu F. Retail Co., Ltd. and Nippan Co., Ltd. from ONTSU Co.,Ltd. for ¥ 2 on August 27, 2021. Watts will acquire 1000 shares of Ontsu F. Retail and 400 shares of Nippan.

For the year ended March 2021, Ontsu F. Retail had total assets of ¥2.9 billion, sales of ¥9.1 billion, operating income of ¥330 million, ordinary incomes of ¥309 million and net income of ¥209 million. For the year ended March 2021, Nippan had total assets of ¥190 million, sales of ¥526 million, operating income of ¥0 million, ordinary income of ¥2 million and net profit of ¥17 million. The transaction is expected to be completed by October 1, 2021.

The impact of this acquisition on the consolidated financial results for the fiscal year ending August 2021 is currently under scrutiny.