Japan Adhesives and Sealants M&A: Foreign Majors Entering Japan and Japanese Makers Expanding in Asia

(USD figures are converted at USD/JPY = 150 for reference and rounded. Company fiscal years are shown as FY2026/3, meaning the fiscal year ended March 2026. Industry statistics are for calendar years. Other currencies are shown as disclosed.)

In Japan adhesives and sealants M&A, Belgium’s Soudal acquired a majority stake in Osaka-based Sharp Chemical in January 2025, and in February 2026 Osaka-based Konishi agreed to acquire the synthetic resin emulsion business of Mitsubishi Chemical Group. Switzerland’s Sika has taken over businesses and acquired companies in Japan since 2004, and Yokohama Rubber transferred its Hamatite business to Sika in 2021. Among Japanese companies, Kaneka made Cemedine a wholly owned subsidiary in 2022, and Aica Kogyo has continued to acquire adhesive and resin companies in Thailand, Malaysia and Taiwan.

This article is written for corporate development and international business development teams at foreign companies that see Japan as an acquisition market, a source of partners, or a source of acquirers for their own businesses. It reviews the market structure and major players of Japanese adhesives and sealants, domestic consolidation and acquisitions by foreign companies in Japan, Japanese makers’ acquisitions abroad, the industry-specific factors acquirers examine, and the implications for overseas acquirers.

1. Market Structure — Declining Production and Changes in Raw Materials and End Uses

Market size

According to the Japan Adhesive Industry Association (JAIA), adhesive production fell from 851,191 metric tons in 2020 to 758,249 metric tons in 2023, 746,953 metric tons in 2024 and 706,441 metric tons in 2025 (down 5.4% year on year). Total shipments in 2025 were 684,422 metric tons (up 1.4% year on year), so production and shipments moved in opposite directions from the prior year. By end use, shipments were 33.1% plywood and woodworking, 20.2% construction, 14.6% packaging, 7.7% vehicles and transport equipment, and 5.7% electrical equipment (shares are Syntax Partners’ calculations). Shipments for automobiles within vehicles and transport equipment rose from 37,684 metric tons in 2023 to 50,141 metric tons in 2024 (up 33.1% year on year, Syntax Partners’ calculation) and 51,373 metric tons in 2025 (JAIA, Statistics).

By type, 2025 production was 24.9% water-based, 24.6% formaldehyde-based (urea, melamine and phenolic resins), 15.0% pressure-sensitive, 12.4% reactive (polyurethane, modified silicone, epoxy and others), 11.5% hot melt, 3.9% solvent-based and 2.8% industrial sealants (shares are Syntax Partners’ calculations). By product within these types, phenolic resin adhesives were the largest at 112,992 metric tons.

For construction sealants, the Japan Sealant Industry Association reports production in kiloliters. In the figures it publishes from 2022 onward, production fell from 82,294 kiloliters in 2022 to 78,216 kiloliters in 2025 (down 1.5% from 2024). In 2025, modified silicone accounted for 46.0%, polyurethane for 28.2% and silicone for 22.4% (shares are Syntax Partners’ calculations; Japan Sealant Industry Association, Production statistics). The adhesive statistics are by weight (metric tons) and the construction sealant statistics by volume (kiloliters), so the two cannot be added together.

End-use segments

Companies in the industry differ in competitors, raw materials and sales channels depending on their products, applications and customers. In M&A, the applications in which a company’s products are used shape both the set of likely acquirers and the way they assess the business.

End-use segment	Main products	Business characteristics (as seen in statistics and company disclosures)
Plywood and woodworking	Phenolic, urea and water-based adhesives	The largest end use, at 33.1% of shipments (2025). Aica Kogyo has acquired companies making wood adhesive resins in Asia (Case 9)
Construction	Interior adhesives, construction sealants, waterproofing materials	Modified silicone accounted for 46.0% of construction sealants (2025). Foreign majors have acquired waterproofing and sealant companies (Cases 4, 5 and 7)
Automobiles and electrical equipment	Structural adhesives, automotive sealers, thermally conductive materials	Shipments for automobiles were 51,373 metric tons in 2025. An automotive adhesive business was transferred to a foreign major (Case 5), and Kaneka cited heat dissipation applications in EV electrical components as a reason for taking full ownership of Cemedine (Case 1)
Packaging, paper converting and hygiene products	Hot melt and water-based adhesives	Packaging accounted for 14.6% of shipments (2025). Bostik cited serving hygiene product customers in Japan as a reason for its transaction (Case 6)
General purpose and household	Instant adhesives, general-purpose adhesives	Household use was 3,472 metric tons, or 0.5% of shipments (2025). Toagosei agreed to acquire its partner’s stake in a US joint venture selling instant adhesives and dissolved the joint venture in August 2025 (Case 10)

Pressure-sensitive adhesives, used in the adjacent field of adhesive tapes, accounted for 15.0% of production (2025).

5 drivers of consolidation

Declining production and concentrated end uses — Adhesive production fell by about 17% from 2020 to 2025, and construction sealant production fell by 5.0% from 2022 to 2025 (both Syntax Partners’ calculations). In 2025, adhesive production fell 5.4% year on year while shipments rose 1.4%. More than half of shipments go to plywood, woodworking and construction, which depend on housing and construction demand. Shipments for automobiles rose 33.1% year on year in 2024 (Syntax Partners’ calculation).
Raw material procurement — On March 31, 2026, Cemedine announced that raw materials for chemical products, such as crude oil and naphtha, had become difficult to obtain, and that it might revise prices and terms for adhesives and sealants and limit shipments of some products. On April 14, 2026, Auto Chemical Industry announced that it would suspend orders for sealant products from April 15, citing severe disruption of supply chains for petroleum-based raw materials due to the closure of the Strait of Hormuz and other factors.
Foreign majors building up their businesses in Japan — According to the history of Sika’s Japanese subsidiary, Sika took over the construction chemicals business of the Osaka-based Secaicho group (2-component polyurethane and silicone construction sealants, with annual sales of about CHF 30m) in 2004 and the sealing business of Henkel Japan in 2010, acquired Dyflex in 2010 and Yokohama Rubber’s Hamatite business in 2021, and in 2023 merged 5 Japanese companies into Sika Japan (Cases 4 and 5). Sika’s 2025 annual report states that its acquisitions primarily target medium-sized companies in Europe, the US and Asia. Arkema (Bostik) raised its stake in a Japanese joint venture in 2018 (Case 6), and Soudal entered Japan through an acquisition in 2025 (Case 7).
Portfolio reviews by large groups and the handling of listed subsidiaries — Yokohama Rubber cited growth under the Sika group, an industry leader, as its reason for selling the Hamatite business (Case 5); Mitsubishi Chemical cited operating its emulsion business under the best owner (Case 2); and Kaneka cited faster decision-making and the elimination of a parent-subsidiary dual listing as reasons for taking full ownership of Cemedine (Case 1). Mitsubishi Chemical Group’s synthetic resin emulsion business is being transferred to Konishi (Case 2), and Nitta Gelatin’s adhesive business was transferred to its joint venture with Bostik (Case 6).
Growth in Asia — Of Aica Kogyo’s adhesive sales of ¥94.29bn (~USD 629m; FY2026/3), its Asia-Pacific group companies accounted for ¥72.15bn, or about 77% (share is Syntax Partners’ calculation). Toagosei’s strategy for its adhesive materials business includes revitalizing its US instant adhesive business and developing business in India and neighboring countries. Japanese makers have expanded their overseas production and sales bases through acquisitions of Asian companies and joint ventures (Section 4).

2. Industry Landscape

Major companies

Company	Ownership	Revenue (fiscal year)	Adhesive and sealant business and recent moves
Aica Kogyo	Listed	¥251.8bn (FY2026/3)	Adhesives of ¥94.29bn within the chemical products segment. Company revenue includes building materials and other products. Continues to acquire in Thailand, Malaysia and elsewhere (Cases 8 and 9)
Toagosei	Listed	¥162.3bn (FY2025/12)	Adhesive materials business revenue of ¥13.6bn. Company revenue includes commodity chemicals and other products. Agreed to acquire its partner’s stake in a US joint venture and dissolved the joint venture in August 2025 (Case 10)
Konishi	Listed	¥136.6bn (FY2026/3)	Bond (adhesives) business ¥74.3bn, chemical products business ¥39.2bn, construction business ¥23.1bn. Plans to acquire Mitsubishi Chemical Group’s emulsion business (Case 2). Took full ownership of Sunrise and has acquired construction companies (Case 3)
ThreeBond	Unlisted	Group revenue of ¥101.4bn (FY2025/12)	Operating companies under the holding company ThreeBond Holdings
Cemedine	Wholly owned by Kaneka	Consolidated revenue of ¥28.6bn (FY2022/3)	Became a wholly owned subsidiary of Kaneka and was delisted in 2022 (Case 1)
Sika Japan	Japanese subsidiary of Sika (Switzerland)	Not disclosed	1,078 employees (as of July 2026). Merged 5 Japanese companies in 2023 (Cases 4 and 5)
Sekisui Fuller	Sekisui Chemical 50%, H.B. Fuller (US) 50%	Not disclosed	Established as a joint venture in 2005. A consolidated subsidiary of Sekisui Chemical
Bostik Nitta	Arkema (France) group; Nitta Gelatin 20.0%	¥5.2bn (FY2017/12, non-consolidated, before the 2018 business transfer)	Joint venture established in 1982. Arkema raised its stake in 2018 (Case 6)

Companies within corporate groups

The sector includes subsidiaries of Japanese chemical makers and Japanese subsidiaries and joint ventures of foreign majors. Cemedine is wholly owned by Kaneka (Case 1). Sekisui Fuller is a joint venture owned 50% each by Sekisui Chemical and US-based H.B. Fuller, and Sekisui Chemical’s annual securities report lists it as a consolidated subsidiary in which it holds 50.0% of the voting rights. H.B. Fuller established a separate Japanese subsidiary in 2019 and said it would cooperate with Sekisui Fuller in sales and distribution. Sika Japan, Henkel Japan and Bostik Nitta are group companies of foreign majors.

Group subsidiaries and joint ventures have been the subject of stake increases, full acquisitions and the dissolution of joint ventures as parent companies reviewed their businesses or their relationships with joint venture partners changed (Cases 1, 6 and 10, and Cemedine Automotive in Section 3).

Owner-run unlisted companies

Construction sealants, waterproofing materials and industrial adhesives include unlisted makers run by founding families. Dyflex, in which Sika acquired a majority in 2010, was a liquid waterproofing maker run by its founder, who established it in 1964 (Case 4). Sharp Chemical, in which Soudal acquired a majority in 2025, was founded in 1960, is run by the second generation and has 70 employees (Case 7). Some of the construction companies Konishi acquired were wholly owned by individual shareholders (Case 3). Unlisted companies also include those with other ownership structures, such as Auto Chemical Industry, which lists Iwata Shokai and Tokyo Small and Medium Business Investment & Consultation as major shareholders. Such companies disclose little information, and identifying candidates requires research beyond public databases.

Kansai-based companies in the cases

Konishi has its head office in Doshomachi, Chuo-ku, Osaka, and its construction subsidiary Bond Engineering is in Tsurumi-ku, Osaka (Case 3). Sharp Chemical has its head office in Osaka (Case 7). Bostik Nitta was located in Naniwa-ku, Osaka at the time of the 2018 disclosure (Case 6). The Secaicho group, whose business Sika took over in 2004, was described by Sika as based in Osaka (Section 1). Sika’s business in Japan began with Nippon Sika Kogyo, established in Osaka in 1931; it moved its head office to Tokyo in 1934 and built a plant in Ono, Hyogo Prefecture, in 1992. Sekisui Fuller has a plant in Shiga Prefecture, and Henkel Japan has a plant in Kakogawa, Hyogo Prefecture.

3. Domestic Consolidation — Absorbing Listed Subsidiaries, Buying Businesses From Chemical Groups and Entry by Foreign Majors

Case 1: Kaneka and Cemedine (2015–2022) — From equity-method affiliate to consolidated subsidiary and full ownership

Kaneka held 29.61% of Cemedine, accounted for by the equity method, through a third-party allotment in 1990 and a negotiated purchase in 2008, among other transactions. On December 8, 2015, Kaneka announced a partial tender offer for Cemedine at ¥576 per share, a premium of 14.74% to the closing price of ¥502 on the business day before the announcement, with a maximum of 21.39% of shares and the stated intention of keeping Cemedine listed. After the tender offer, Kaneka’s stake was 51.00%, and Cemedine became a consolidated subsidiary in January 2016. The 2 companies cited the development of structural adhesives and adhesives for composites for overseas markets, mainly in Europe and the US, and cross-selling of Kaneka’s thermally conductive adhesives and Cemedine’s adhesives for electronic materials through each other’s channels.

On May 12, 2022, Kaneka announced that it would make Cemedine, in which it held 54.76% (as of March 31, 2022), a wholly owned subsidiary through a simplified share exchange (0.282 Kaneka shares for each Cemedine share). Cemedine was delisted on July 28, 2022, and the share exchange took effect on August 1. The 2 companies cited faster decision-making on overseas expansion, new businesses and technology development, the combination of Kaneka’s polymer synthesis technology with Cemedine’s adhesive formulation and evaluation technology, the use of Kaneka’s global sales network for heat dissipation applications in EV electrical components, and the elimination of the parent-subsidiary dual listing. Cemedine’s consolidated revenue was ¥28.6bn (~USD 191m; FY2022/3).

This case shows that (i) a Japanese chemical maker that had long been a minority shareholder in an adhesive maker made it a consolidated subsidiary through a partial tender offer and, 6 years later, a wholly owned subsidiary through a share exchange, and (ii) the acquirer and the target cited the combination of raw material polymers with adhesive formulation technology and heat dissipation applications in EV electrical components.

Case 2: Konishi and Mitsubishi Chemical Group’s synthetic resin emulsion business (2026) — Acquiring a business from a large chemical group

On February 17, 2026, Konishi agreed to acquire all shares of a company being newly established by Mitsubishi Chemical, making it a subsidiary. The new company will take over, through an absorption-type company split, Mitsubishi Chemical’s acrylic emulsion business and the synthetic resin emulsion business of Japan Coating Resin, a Mitsubishi Chemical subsidiary. Both the company split and the share transfer are scheduled for December 1, 2026. The price was not disclosed, and Mitsubishi Chemical disclosed Japan Coating Resin’s revenue as about ¥12.2bn (FY2025/3). Mitsubishi Chemical said it had concluded that operating the business under the best owner was the best course, and Konishi cited strengthening the product presence and technology of its Bond (adhesives) business and the combination with the trading functions of its chemical products business.

This case shows that (i) a large chemical group’s emulsion business, which is also used as a raw material for adhesives, is being transferred to a Japanese adhesive maker through a company split and share transfer, and (ii) the acquirer cited contributions to both its adhesive business and its chemical sales business.

Case 3: Konishi, Sunrise and construction companies (2017–2026) — Full ownership of an existing subsidiary and acquisitions of construction companies from individuals

Konishi held 71.11% of Sunrise, which makes construction sealants, automotive mastic sealers and adhesives, and adhesives for optics and glass (revenue of ¥11.3bn for FY2024/3). On May 22, 2024, Konishi announced that it would make Sunrise a wholly owned subsidiary through a simplified share exchange (20.30 Konishi shares for each Sunrise share), effective June 30, 2024. Konishi cited faster decision-making in its Bond business, more efficient consolidated management and the use of group resources.

Konishi has also acquired several companies that carry out construction work using adhesives and repair materials. In July 2017, it acquired all shares of a building and civil engineering contractor in Fujieda, Shizuoka Prefecture (revenue of ¥5.1bn for FY2016/6), from 7 individual shareholders, citing the combination of materials and methods for repair, renovation and seismic reinforcement, construction capability and a nationwide sales network. In July 2020, it acquired 91% of a company in Nagoya from individual shareholders and merged it into its subsidiary Bond Engineering in Tsurumi-ku, Osaka in 2022. It acquired a construction company in Nagano Prefecture in January 2023 and another construction company in January 2026.

This case shows that (i) a Japanese adhesive maker took full ownership of a sealant and adhesive subsidiary in which it already held a majority through a share exchange, and (ii) the same maker has acquired construction companies that apply adhesives and repair materials from individual shareholders.

Acquisitions in Japan by foreign companies (Out-In)

Foreign adhesive and construction chemicals majors have acquired makers run by founders and founding families, acquired businesses from large groups and raised their stakes in joint ventures in Japan.

Case 4: Sika and Dyflex (2010 and 2014) — Majority acquisition of a founder-run waterproofing maker, followed by full ownership

On May 31, 2010, Swiss construction chemicals maker Sika announced that it had acquired a majority of the shares of the holding company of Dyflex, a maker of liquid waterproofing materials. Dyflex had 2009 sales of about ¥14bn (~USD 93m) and about 350 employees, and its founder, who established the company in 1964, was to remain as chief executive officer after the acquisition. The price was not disclosed. Sika cited the complementary products and technologies of the 2 companies, rollout through Sika’s global sales network, cross-selling through customers and channels, and the provision of complete waterproofing systems.

On January 7, 2014, Sika acquired the remaining 24.5% to make Dyflex a wholly owned subsidiary, citing a stronger position in the Japanese construction market and a long-term commitment to Japan. Dyflex was merged into Sika Japan in 2023.

This case shows that (i) a foreign construction chemicals maker acquired a majority of a founder-run Japanese waterproofing maker, with the founder continuing to run the business, and (ii) about 4 years later it acquired the remaining shares and later merged the company with its other group companies in Japan.

Case 5: Sika and Yokohama Rubber’s Hamatite business (2021) — Carve-out of an adhesive and sealant business from a tire maker

On April 28, 2021, Yokohama Rubber announced that it would sell its Hamatite business, which makes construction sealants, urethane waterproofing coatings and automotive adhesives, to Sika. In Japan, the business was transferred to a newly established company, Sika Hamatite, through a simplified absorption-type company split, and all of its shares were sold to Sika’s Japanese subsidiary; in China, the business and equity interests were sold, and in the US and Thailand, the assets were sold. The parties agreed on an enterprise value of ¥17.2bn (~USD 115m), subject to adjustments for working capital and other items. The Japanese business subject to the company split had revenue of ¥14.1bn (FY2020/12), and Sika put the annual sales of the business as a whole at CHF 160m. Production sites were plants in Hiratsuka, Kanagawa Prefecture, and Omitama, Ibaraki Prefecture, and sites in the US, China and Thailand.

Yokohama Rubber said that, as the market environment became more challenging, it had concluded that building a growth path for the business under the Sika group, an industry leader, was the best option. Sika cited a stronger market position in Japan, increased market access to all major Japanese automakers, an expanded range of construction products and stronger production in Japan. The transaction was completed on November 1, 2021, and Sika Hamatite was merged into Sika Japan in 2023.

This case shows that (i) a large tire maker carved out its adhesive and sealant business to a foreign industry leader by combining a company split with country-by-country transfers of businesses and assets, and (ii) the acquirer cited access to Japanese automakers and production sites in Japan.

Case 6: Bostik (Arkema) and Nitta Gelatin’s adhesive business (2018) — Raising the stake in a joint venture and taking over the business

Nitta Gelatin established an adhesive joint venture in 1982, which was renamed Bostik Nitta in 2009. As of May 2018, the joint venture was owned 66.00% by US-based Bostik, Inc. and 34.00% by Nitta Gelatin. On May 17, 2018, Nitta Gelatin announced that it would transfer its adhesive business (excluding manufacturing) to Bostik Nitta through a simplified absorption-type company split and that an Arkema group company would subscribe for new shares issued by Bostik Nitta through a third-party allotment. The consideration was an enterprise value of ¥1.068bn less liabilities related to the transferred employees. Bostik Nitta was located in Naniwa-ku, Osaka, and had revenue of ¥5.2bn (FY2017/12, non-consolidated) and 16 employees. The transaction was completed on August 1, 2018.

Nitta Gelatin cited the accelerating pace of change in the business environment and the alignment of the 2 companies’ policies, the pursuit of growth, and strengthening the business base through the sale of factory land and the construction of a new plant. Arkema cited serving hygiene product customers in Japan and expanding in electronics and automotive applications. As of the end of March 2025, Nitta Gelatin held 20.0%, and Bostik Nitta was an equity-method affiliate of Nitta Gelatin.

This case shows that (i) in a joint venture between a Japanese company and a foreign major, the Japanese company transferred its business to the joint venture and the foreign major subscribed for new shares to raise its stake, and (ii) the Japanese company kept a minority stake after transferring its business.

Case 7: Soudal and Sharp Chemical (2025) — Majority acquisition of a family-run Osaka sealant maker

In January 2025, Belgian sealant and adhesive maker Soudal announced that it had acquired a majority stake in Osaka-headquartered Sharp Chemical. The stake and the price were not disclosed. Sharp Chemical was founded in 1960 by the Murakami and Miyata families and is now run by the second generation. It focuses on hybrid sealants and adhesives, has sales offices in Tokyo and Sapporo and a production base in Shanghai, China, set up in 2010, and has 70 employees. Soudal said the Japanese and Chinese production facilities would become its 30th and 31st worldwide.

Vic Swerts, Soudal’s founder and chairman, described Japan as one of the company’s most important blind spots on the world map, and Mr. Murakami, chairman of Sharp Chemical, welcomed Soudal’s investment in further growth and market diversification. Sharp Chemical is to keep its company name, brand and market position and expand its range under both its own brand and the Soudal brand.

This case shows that (i) a foreign sealant maker entered Japan by acquiring a majority of a family-run Japanese maker, and (ii) the parties stated their intention to keep the target’s company name and brand.

Other transactions in Japan involving foreign companies

Sekisui Fuller is a joint venture established in 2005 by combining the Japanese adhesive businesses of Sekisui Chemical and US-based H.B. Fuller, and each now holds 50% (Section 2). In the other direction, Cemedine acquired 51% of the automotive adhesive company Cemedine Automotive from Germany’s Henkel in 2011, and merged it in October 2017 after waiving about ¥350m of loans to the company, which had liabilities in excess of its assets. In the adjacent field of adhesive tapes and related products, Sumitomo 3M acquired the 25% held by Sumitomo Electric Industries as treasury shares in 2014 and became wholly owned by the 3M group (for ¥90bn).

These transactions show that (i) joint ventures between foreign majors and Japanese companies have seen transactions in every direction: a stake increase by the foreign side (Case 6), consolidation of ownership on the foreign side (Sumitomo 3M) and acquisition of the stake by the Japanese side (Cemedine Automotive), and (ii) changes in joint venture ownership have been used both to expand and to scale back foreign majors’ businesses in Japan.

4. Japanese Acquirers Abroad — In-Out Transactions

For acquirers, these cases show the companies Japanese adhesive makers buy abroad, the direction of their investments and the transaction structures they use.

Case 8: Aica Kogyo and ADB Sealant (2024) — Investing in an adhesive business carved out of a Thai listed company

On September 19, 2024, Aica Kogyo announced that it would subscribe, through its wholly owned Singapore subsidiary AICA Asia Pacific Holding, for new shares issued by ADB Sealant of Thailand through a third-party allotment. ADB Sealant was established in February 2023 by Applied DB, a Thai listed company, to carve out its adhesive business, and makes and sells adhesives and sealants in Samut Prakan Province. Its revenue was THB 668m (February–December 2023). By combining common shares and another class of shares, Aica Kogyo acquired 49.0% of the equity and 51.0% of the voting rights, and the subscription amount was finalized at THB 361m (about ¥1.58bn). The transaction was completed on November 29, 2024.

Aica Kogyo cited accelerating growth in Asia, adding sealants, which its group had not offered, to its product range, expanding sales through the group’s brands and sales networks in Asia, including Indonesia, and strengthening its position in the retail market.

This case shows that (i) a Japanese adhesive maker invested, through a share subscription, in an adhesive business carved out of a foreign listed company, (ii) it secured a majority of the voting rights through a combination of share classes while holding 49.0% of the equity, and (iii) it cited adding a product category it lacked and expanding sales through its existing network.

Case 9: Aica Kogyo and Dynea’s Asia-Pacific business (2012) and others — Acquiring wood adhesive resins and continuing acquisitions in Asia

In December 2012, Aica Kogyo acquired an interest in the Singapore holding company of the Asia-Pacific business of chemical maker Dynea. That company is now AICA Asia Pacific Holding, wholly owned by Aica Kogyo. Aica Kogyo later acquired 60% of Thai Chemical Corporation, a Thai maker of wood adhesive resins (revenue of THB 1.59bn for FY2015/12), from Mitsubishi Corporation in March 2018 (the acquisition was decided in 2017); 50.1% of Evermore Chemical Industry, a Taiwanese urethane resin maker, through a local tender offer in 2017–2018 (TWD 20 per share, about TWD 996m in total); and 70% of Adtek, a Malaysian hot melt adhesive maker, in April 2021. In September 2023, it decided to acquire KUEN BONG Technology, a Thai phenolic resin maker.

These transactions show that (i) a Japanese adhesive maker acquired the Asian business of a foreign chemical maker together with its holding company and used it as a regional headquarters for later acquisitions, and (ii) the targets included makers of resins used as raw materials for adhesives as well as adhesive makers.

Case 10: Toagosei and Elmer’s & Toagosei (2025) — Acquiring the partner’s stake in a US joint venture

On July 1, 2025, Toagosei agreed, through its US subsidiary Toagosei America, to acquire the 50% of Elmer’s & Toagosei (Atlanta, Georgia), a joint venture that sells the instant adhesive Krazy Glue, held by the group of its joint venture partner, US-based Newell Brands. The price was not disclosed. Toagosei cited intensifying competition in the US market and its aim of integrating manufacturing and sales under its own management for faster, more flexible operations and a higher market share.

According to Toagosei’s annual securities report, it dissolved the joint venture agreement with Newell Brands in August 2025 and excluded Elmer’s & Toagosei from its equity-method affiliates.

This case shows that (i) a Japanese adhesive maker agreed to acquire its overseas joint venture partner’s stake and dissolved the joint venture to run the business on its own, and (ii) it cited integrated management of manufacturing and sales.

In addition, Konishi signed a joint venture agreement with Indonesia’s Triputra group in July 2019 and established an adhesive manufacturing and sales company, 70% owned by Konishi, in January 2021. In Vietnam, it turned an affiliate established in 2010 into a subsidiary through an additional investment in August 2013.

5. Industry-Specific Factors Examined by Acquirers

In Japan adhesives and sealants M&A, acquirers examine industry-specific factors in addition to financials. Based on the reasons disclosed by acquirers and the course of the transactions in the cases above, these factors fall into 3 groups.

Products and technology — The types of products a company supplies, the applications it serves and their fit with the acquirer’s products. In Case 4, Sika cited complementary waterproofing products and technologies, and in Case 8, Aica Kogyo cited adding sealants to its range. In Case 1, Kaneka cited the combination of its polymer synthesis technology with adhesive formulation and evaluation technology, and heat dissipation applications in EV electrical components.
Customers and channels — Customer industries and regions and the composition of sales channels. In Case 5, Sika cited increased market access to all major Japanese automakers; in Case 6, Arkema cited serving hygiene product customers in Japan; and in Case 8, Aica Kogyo cited its sales network in Asia, including Indonesia, and the retail market. In Case 2, Konishi cited the combination with the trading functions of its chemical products business.
Production and raw materials — Production sites and raw material procurement. In Case 5, the plants in Hiratsuka and Ibaraki and the overseas sites were part of the transaction, and Sika cited stronger production in Japan. In Case 7, Soudal said the Japanese and Chinese production facilities would join its global network. In March and April 2026, some makers announced revisions of prices and terms or suspensions of orders because raw materials were difficult to obtain (Section 1).

6. Implications for Overseas Acquirers

Target universe

By type of seller, the targets in the cases above fall into 3 groups. The first is businesses of large groups: Yokohama Rubber’s Hamatite business (Case 5) and Nitta Gelatin’s adhesive business (Case 6) were transferred, and Mitsubishi Chemical Group’s synthetic resin emulsion business is being transferred (Case 2). Overseas, the adhesive business of a Thai listed company (Case 8) and the Asian business of a chemical maker (Case 9) were also transaction targets. The second is unlisted makers run by founders and founding families: Dyflex (Case 4) and Sharp Chemical (Case 7) were acquired by foreign majors. The third is stakes in existing subsidiaries, affiliates and joint ventures: Kaneka’s Cemedine (Case 1), Konishi’s Sunrise (Case 3) and overseas joint venture stakes (Case 10 and Section 3).

Within the scope of this article’s research, no acquisitions of Japanese adhesive or sealant makers by investment funds were identified. Unlisted makers and construction companies disclose little information; identifying them requires research beyond public databases, and approaching them requires direct contact with owners and parent companies.

Transaction structures

For businesses of large groups, the business was transferred to a newly established company through a company split and the shares of that company were sold (Cases 2 and 5). In Case 5, the structure differed by country: a company split and share transfer in Japan, transfers of the business and equity interests in China, and asset transfers in the US and Thailand. For an unlisted maker, one acquirer started with a majority and acquired the rest about 4 years later (Case 4). For a listed company, the acquirer used 2 steps: a partial tender offer to make the target a consolidated subsidiary, followed by a share exchange for full ownership (Case 1). For joint ventures, the cases include a stake increase through a combination of a business transfer and a share subscription (Case 6) and the acquisition of the partner’s stake (Case 10); overseas, one investment secured a majority of the voting rights through a combination of share classes (Case 8).

Disclosed prices include the tender offer price in Case 1 (a premium of 14.74% to the closing price on the business day before the announcement), the enterprise value of ¥17.2bn in Case 5, the enterprise value of ¥1.068bn in Case 6 and the subscription amount of THB 361m in Case 8.

Seller priorities

Yokohama Rubber cited the prospect of building a growth path for the business under an industry leader as its reason for the sale (Case 5), and Mitsubishi Chemical cited operating the business under the best owner (Case 2). Nitta Gelatin cited the pursuit of growth and strengthening the business base through the sale of factory land and the construction of a new plant, and kept a stake after transferring its business to the joint venture (Case 6). At Dyflex, the founder continued to run the business after the acquisition (Case 4), and at Sharp Chemical, the parties stated their intention to keep the company name and brand (Case 7). These facts suggest that the sellers in these cases looked to the acquirer’s scale and sales network as a base for the business’s growth after the sale, while choosing structures that preserved the continuity of the business through continued management, retained brands or a retained stake.

7. Syntax Partners

Syntax Partners is a Japan-based M&A advisory firm that acts solely as financial advisor. In any transaction, we advise one side only, either the buyer or the seller. We advise on Japan adhesives and sealants M&A, including related chemicals, in both domestic and cross-border transactions.

Buy-side advisory

For foreign companies and investment funds considering acquisitions or capital alliances in Japan, we support the full process: mapping targets based on your strategy, including businesses of large groups and family-run makers with limited public information; approaching owners and parent companies directly; negotiation; and execution. We also support add-on acquisitions by investment funds and the search for carve-out opportunities from large groups. We work in Japanese and English, among other languages.

Sell-side advisory

As an advisor that maximizes the interests of sellers and owners, we support Japanese owners, parent companies and fund owners considering a sale or business succession. The buyer universe we cover includes not only Japanese chemical and adhesive makers but also companies in adjacent industries, funds, and overseas adhesive and construction chemicals majors as strategic buyers. Our transaction support draws on our understanding of the industry, including product types and end-use mix, relationships with major customers, and production sites and raw material procurement.

We welcome discussions at any stage, from early-stage exploration of acquisitions or partnerships in Japan to live transactions.

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This article was prepared by Syntax Partners, Inc. based on public information, including companies’ official announcements and IR materials, and statistics from industry associations.

Syntax Partners, Inc.