TOKYO -- Sangetsu plans to acquire Singaporean interior decor company Goodrich Global Holdings to help accelerate its business development in greater Asia, The Nikkei has learned.
In a deal to be announced as early as Thursday, the Nagoya-based wallcovering leader in Japan will pay a little over 2 billion yen ($17.7 million) to obtain around 70% of Goodrich Global from an investment fund and other shareholders.
Goodrich sells wallcoverings, carpets and other interior decor to hotels and other customers in six countries mainly in Southeast Asia, where it has the largest market share, as well as in China, generating around $44 million in sales in 2016. Sangetsu seeks to utilize Goodrich's sales network to to increase its sales.
Sangetsu controls about 50% of the Japanese market in wallpaper, but as the domestic market hits a ceiling, it has been sharpening focus on overseas operations. In 2016, the company bought a U.S. manufacturer of wall decoration materials for a little over 10 billion yen. The latest acquisition is expected to solidify its foundation for Asian business and help achieve overseas sales of more than 20 billion yen.