Fuji Seal Acquires PAGO Holding - Manufacturer of Self-adhesive Labels

The board of directors of Fuji Seal International, Inc. (hereafter referred to as "FSI") has resolved that FSI entered into and agreed the Share Purchase Agreement with a Swiss corporation, PAGO Holding AG (hereafter referred to as "PAGO" or "PAGO Group" collectively) by taking over 100% of its shares. PAGO Group has been engaged in the business of manufacture, sales and development of self adhesive labels and its labeling systems in Europe.

Purpose of Acquisition

Fuji Seal Group (hereafter referred to as "FSG") has been engaged in the business of planning, proposals, development, manufacturing and sales of packaging systems such as shrink labels, self adhesive labels, soft pouches and the packaging machinery targeting global brand owners of food, beverage and FMCG in Japan, Americas, Europe and the ASEAN countries.

"To always be the customers first choice as partner, we provide differentiated products and services by comprehending customers needs for packaging." Under this corporate vision, FSG continues to develop packaging materials and machinery featuring new functions and competitiveness in TCO in line with customers needs and demands and provides valuable products with our customers.

FSG announced its new Mid-Term Plan with management goals to increase corporate value of FSG through continuous development of business. In order to achieve this plan and as "Total Packaging Company" we have tackled challenges and implemented speedy operations and deployment in the global markets including self adhesive label business.

The group to acquire this time, PAGO group, headquartered in Switzerland, has been engaged in the sale and manufacturing of self adhesive labels and labeling systems with their main markets in Switzerland, Germany and other European countries, where they are based and have strong business basis, reputations in PAGO brand. PAGO group has very high confidence and evaluation in their technology, quality and services from their customers.

For FSG speeding up the global operations and deployment in packaging business, the acquisition of PAGO will contribute to the achievement of FSG mid term business plan by the use and fusion of brand values, technology quality and services of FSG and PAGO.

Method of Acquisition of Shares

FSI shall acquire all the shares issued of PAGO in cash by the execution of the Share Purchase Agreement on the Closing date. The total cost of acquisition will amount to CHF120,900,000 (approximately JPY 9,826,000,000). The cash on hand and loans will be allocated to finance this acquisition. The calculating method of the acquisition cost has been determined by mutual agreement based on a due diligence by third party.

About Fuji Seal

Fuji Seal Europe provides Shrink Sleeve Labels, Spouted pouch, and labeling Machinery and a maintenance service. There are many countries in Europe and clients requests for packaging are varied due to difference in language, culture, people, and history. Small lot production and environmental friendliness are required for packaging as well as multi-language indication, sophisticated design, and high-functionality. Fuji Seal Europe has taken full advantage of its experience in the course of corresponding to multiplicity and quick changes in the advanced packaging market of Europe and has furthered its business strength. Utilizing our proposal ability and technological strength, we continue to strive to solve problems co-operating with clients as their good partner.

Source: Fuji Seal