Announcement on Additional Acquisition of Shares of Seki Yakuhin Co., Ltd. (Consolidation as a Subsidiary)

Overview of M&A

Sugi Holdings Co., Ltd. has decided to additionally acquire shares of Seki Yakuhin Co., Ltd., a pharmacy-attached drugstore operating mainly in Saitama Prefecture, increasing its ownership ratio from 49.0% to 51.0% to consolidate it as a subsidiary. The number of shares acquired is 2,182, and although the acquisition price is undecided, it has been agreed upon at a fair price based on the most recent financial figures. The share transfer execution date is scheduled for September 1, 2026, and will be carried out after completion of the antitrust procedures.

Background, Purpose of Acquisition, and Future Outlook

Initially, the additional acquisition was targeted for June 2030; however, due to greater-than-expected progress in corporate culture compatibility and synergy effects between both companies, the timing of the acquisition was significantly advanced. By consolidating it as a subsidiary, the company aims to integrate management structures, expedite decision-making, maximize management resources, expand the store network, and enhance expertise, thereby strengthening competitiveness and pursuing sustainable growth. The impact on the Fiscal Year ending February 2027’s results is currently under review and will be promptly disclosed as necessary.