For Immediate Release
February 8, 2019

Company Name: Kurita Water Industries Ltd.
Representative:
Michiya Kadota, President(Securities Code: 6370, First Section of TSE)
Contact:
Hisashi Tanabe(Tel:General Manager of Corporate
Planning Department+81-3-6743-5492)

Notice Regarding the Acquisition of U.S. Water Services, Inc. (to Make it a Subsidiary)

Kurita Water Industries Ltd. (“Kurita”) announced today that it has decided to acquire 100% of the outstanding
shares of Global Water Services Holding Company, Inc. (Head Office: Delaware, U.S.; “GWS”), which is aholding company of U.S. Water Services, Inc. (Head Office: Minnesota, U.S.; “U.S. Water”), through Kurita
America Holdings Inc. (Head Office: Delaware, U.S.; a wholly-owned subsidiary of Kurita). U.S. Water
manufactures and sells water treatment chemicals and facilities in the U.S. Kurita America Holdings Inc. hassigned a stock purchase agreement with ALLETE Enterprises, Inc. (Head Office: Minnesota, U.S.), theshareholder of GWS.

The acquisition is subject to customary closing conditions and regulatory approvals.

1. Purpose of the acquisition
Founded in 1997, U.S. Water is headquartered in Minnesota and has manufacturing and sales offices acrossthe U.S. It has approximately 5,000 customers and has established strong relationships with blue-chipcompanies in the U.S. in a wide range of industries, including food and beverage, oil and gas, bioethanol
refineries, electric power, light industry and commercial / public facilities. U.S. Water helps these companies
save water and energy by providing various water chemicals, facilities and engineering services.

Kurita Group will combine U.S. Water’s customer base and sales network with its own competitive products andhighly unique services such as pure water supply and wastewater reclamation. Kurita Group will also utilize its
IT sensing technology to develop a service contract-based business. Kurita Group will further improve customer
relationships and accelerate business development in the U.S.

Kurita Group aims to expand its business globally by establishing platforms in four regions of the world – Japan,Asia, Europe and the Americas. This acquisition will strengthen Kurita Group’s businesses in North America,
which is a strategic market. This acquisition is expected to increase Kurita Group’s sales in the U.S. byapproximately four times.

2. Overview of the subsidiary
Overview of GWS(1)

Name(2)

Location

(3)
(4)
(5)
(6)

Global Water Services Holding Company, Inc.
Corporation Trust Center, 1209 Orange Street, Wilmington, New Castle,
Delaware 19801, U.S.

Name and title ofAlan R. Hodnik (CEO)representatives

Robert J. Adams (President)

Business description

Holding company of U.S. Water Services, Inc.

Common stock andpaid-in capital
Date of founding$193 million
January 20, 2015

Major shareholders(7)

and shareholding

ALLETE Enterprises, Inc. 100%ratios
Capitalrelationship(8)

Relationship with

Human

Kurita Grouprelationship
Businessrelationship

NoneNoneNone

Note 1: Business performance and financials are not disclosed because GWS does not generate any profit orloss.

Overview of U.S. Water
(1)

Name

U.S. Water Services, Inc.

(2)

Location

12270 43rd St. NE, St. Michael, Minnesota 55376, U.S.

(3)
(4)
(5)
(6)

Name and title ofrepresentatives
Business description
Common stock andpaid-in capital
Date of founding

LaMarr Barnes (CEO)Manufacturing and selling water treatment chemicals and facilities$193 million
June 9, 1997

Major shareholders(7)

and shareholding

Global Water Services Holding Company, Inc. 100%

ratios(8)

Relationship withCapital

Kurita Grouprelationship

NoneHuman

None

relationship
BusinessNone

relationship(9)Business performance in the last three years (in millions)Fiscal year ended

December 31, 2016

December 31, 2017

December 31, 2018

$137.5$151.8$172.1(¥14,986)(¥16,543)(¥18,754)

Net sales

Note 2: Converted at the exchange rate of $1.00 = ¥109
Note 3: The figures above were disclosed by U.S. Water. They have not been audited.
Note 4: Operating income, ordinary income, net income and dividend per share are not disclosed per U.S.
Water’s request.

3. Overview of the Seller
(1)

Name

ALLETE Enterprises, Inc.

(2)

Location

30 West Superior Street, Duluth, Minnesota 55802, U.S.

Name and title ofAlan R. Hodnik (Chairman, President and CEO)representative

Robert J. Adams (CFO and Treasurer)

Business description

Holding company for ALLETE subsidiaries

(3)
(4)
(5)

Common stock andpaid-in capital$444 million(6)

Date of founding

October 23, 1996

(7)

Net assets$685 million(8)

Total assets$812 million

Major shareholders(9)and shareholding

ALLETE, Inc. (NYSE:ALE) 100%

ratiosCapitalrelationship
Human(10)Relationships withrelationship

Kurita GroupBusiness
relationship

None

None

NoneRelated

ALLETE Enterprises, Inc. and its directors, employees

partiesor affiliates are not related parties of Kurita Group4. Number of shares acquired, shareholding and purchase price
(1)

(2)

Number of shares held
before the acquisition
Number of shares

0 (shareholding ratio: 0%)3,517,457 sharesacquired

Purchase price:(3)

Acquisition cost$270 million (Approximately 29.4 billion yen)

Advisory fees: Approximately 700 million yen (Approximately $6.4million)(4)

Number of shares held
after the acquisition

3,517,457 shares (shareholding ratio: 100%)

Note 5: To be adjusted for net working capital and net debt as of closing.
Note 6: Converted at the exchange rate of $1.00 = ¥109

5. Schedule(1)

Board approval

February 8, 2019(2)

Date of signing

February 8, 2019(3)

Date of closing

Subject to customary closing conditions and regulatory approvals6. Financial impact
The impact of this acquisition on Kurita’s consolidated earnings forecast is currently under consideration. Kurita
will promptly disclose matters as necessary.

(Ref) Consolidated earnings forecast for the fiscal year ending March 31, 2019 (disclosed on November 9, 2018)
and consolidated earnings for the previous fiscal year (yen in millions)
Consolidated

Consolidated

Consolidated

Profit attributablenet sales

operating income

ordinary income

to owners of parent

260,000

24,00024,20017,000236,815

22,475

22,104

17,897

Consolidated
earnings forecast forthe current fiscal year
ending March 31,
2019
Consolidated
earnings for theprevious fiscal year
ended March 31,2018