May13, 2019
For Immediate Release
Company Name:

Kurita Water Industries Ltd.

Representative:

Michiya Kadota, President(Securities Code: 6370, FirstSection of TSE)

Contact:

Shuichiro Kashimoto,General Manager of Corporate
Communications and CSR
Department(Tel. +81-3-6743-4389)

Notice Regarding the Acquisition of Avista Technologies, Inc. and Avista Technologies (UK) Ltd.
(to Make Them Subsidiaries)

Kurita Water Industries Ltd. (“Kurita”) announced today that it has decided to acquire 100% of the outstanding sharesof Avista Technologies, Inc.

(Head Office: California, US; “A-US”), which manufactures and sells water treatment

chemicals, and Avista Technologies (UK) Ltd. (Head Office: UK; “A-UK”), through Kurita America Holdings Inc. (HeadOffice: Delaware, U.S.; a wholly owned subsidiary of Kurita) and Kurita Europe GmbH (Head Office: Germany; awholly owned subsidiary of Kurita), and has signed a stock transfer agreement with four members of the senior
management of A-US and A-UK, who are shareholders.

1. Purpose of the acquisition
A-US specializes in RO chemicals. RO chemicals are water treatment chemicals applied to reverse osmosis (RO)membranes, which are one of the components of water treatment facilities. Besides manufacturing and selling many
types of RO chemicals, A-US also offers services such as RO membrane cleaning and has many customers, mostly in theUS, across a wide range of industries, including the mining, chemical, oil, offshore oil field, and food and beverageindustries, and local government. Meanwhile, A-UK conducts a similar business in the EMEA (Europe, Middle East andAfrica) region under licenses granted by A-US.
Kurita Group will expand its product lineup for RO chemicals by combining the RO chemicals of A-US and its own
unique RO chemicals, and will accelerate expansion in sales of RO products by proposing a wide range of products tocustomers. Kurita Group will also seek to strengthen services related to RO membranes through the exchange oftechnologies and knowhow with A-US.

2. Overview of the subsidiaries
Overview of A-US
(1)

N(2)

L o c a t i o n(3)ame

Na me a nd title ofrepresentatives

Avista Technologies, Inc.
140 Bosstick Blvd. San Marcos, California 92069, United States
Dave Walker, CEO
Manufactureandsaleof(4)Business description(5)

Paid-in(6)

Date of founding

May 5, 1999

Major shareholders andCEO of A-US 75%

sh areho ld in g r at io s

Vice President of A-US 25%(7)

capitalR e l a t i o n s h i p s wi t h

H u m a n

KuritarelationshipB u s i n e s s
relationshipNet sales in the fiscal(9)

year ended December
31, 2018

andprovisionofRO

3,719 US dollars

relationshipGroupchemicals,

membrane-related services

E q u i t y(8)RONoneNoneNone23,055,000 US dollars(2,582,000,000 yen)

(Note 1) 1 US dollar = 112 yen(Note 2) These figures were disclosed by A-US and have not been audited.
(Note 3) We have refrained from publishing details of net assets, total assets, trends in net sales, operating income,ordinary income, net income and dividends per share, as the other party to the agreement has not consented to thedisclosure of this information.

Overview of A-UK
(1)

N(2)

L o c a t i o n(3)ame

Na me a nd title ofrepresentatives(4)

Business description(5)

Paid-in(6)

Date of founding

capitalAvista Technologies (UK) Ltd.
13 Nasmyth Square, Houstoun Industrial Estate Livingston, EH54 5GG,
United Kingdom
Michael Jefferies, Managing Director
Manufactureandsalemembrane-related services
65 pounds
March 23, 2001

ofRO

chemicals,

andprovisionofRO(7)Major shareholders andManaging Director of A-UK 53.8%

sh areho ld in g r at io s

Operations Director of A-UK 46.2%
E q u i t yrelationship(8)

R e l a t i o n s h i p s wi t hH u m a nK

relationshipurita

B u s i n e s srelationshipNet sales in the fiscal(9)

year ended December
31, 2018

None

None

None

4,452,000 pounds(633,000,000 yen)

(Note 1) 1pound = 142.24 yen(Note 2) These figures were disclosed by A-UK and have not been audited.
(Note 3) We have refrained from publishing details of net assets, total assets, trends in net sales, operating income,ordinary income, net income and dividends per share, as the other party to the agreement has not consented tothe disclosure of this information.

3. Overview of the sellers
1) CEO of A-US
(1)

Name

2) Vice President of A-US
3) Managing Director of A-UK
4) Operations Director of A-UK

(2)

R e l a t i o n s h i p s wi t hKurita

None

4. Number of shares acquired, purchase cost and shareholding
(1)

(2)

Number of shares held

0 shares of A-US

[shareholding ratio: 0%]

before the acquisition

0 shares of A-UK

[shareholding ratio: 0%]

Number of shares

80,000 shares of A-USa c q u i r e d65 shares of A-UK
Purchase price of shares of A-US and A-UK: 81.8 million US dollars(3)

Acquisition cost

(Approximately 9.2 billion yen)
Advisory fees: Approximately 230 million yen(4)

Number of shares held

80,000 shares of A-US

after the acquisition

65 shares of A-UK

[shareholding ratio: 100%][shareholding ratio: 100%](Note 1) The acquisition price of the shares of A-US and A-UK will be 81.8 million US dollars plus or minus adjustments
for any excess or deficiency in working capital and net interest-bearing liabilities at the time of closing.
(Note 2) 1 US dollar = 112 yen5. Schedule(1)

Date of Board ofDirectors’ resolution

May 13, 2019(2)

Date of signing

May 13, 2019(3)

Date of stock transfer

May 15, 2019 (Plan)

6. Financial impact
The impact of this acquisition on Kurita’s consolidated earnings forecast is currently under consideration. Kurita willpromptly disclose matters as necessary.

End(Ref) Consolidated earnings forecast for the fiscal year ending March 31, 2020 (disclosed on May 13, 2019) andconsolidated earnings for the previous fiscal year (yen in millions)

Consolidated net

Consolidatedsales

operating income

Income before taxProfit attributableto owners of parent

Consolidated earnings
forecast for the current
fiscal year ending

278,000

29,00029,20020,600March 31, 2020

Consolidated net

Consolidated

Consolidated

Profit attributablesales

operating income

ordinary income

to owners of parent

Consolidated earnings
for the previous fiscalyear

ended March 31,

259,409

24,32623,91917,3232019(Note) Kurita makes consolidated earnings for the previous fiscal year ended March 31, 2019 based on Japanesegenerally accepted accounting principles. Kurita makes consolidated earnings forecast for current fiscal year ending
March 31, 2020 based on International Financial Reporting Standards.