Houlihan Lokey Advises Furukawa

Houlihan Lokey is pleased to announce that, on February 9, 2026, Furukawa Co., Ltd. (Furukawa) entered into a share transfer agreement for EarthTechnica Co., Ltd. (EarthTechnica), a wholly owned subsidiary of Kawasaki Heavy Industries, Ltd. (Kawasaki Heavy Industries).

Since its founding in 1875, Furukawa has expanded its business across a wide range of fields, leveraging core technologies developed through copper mine operations. Its business domains are divided into Machinery and Materials, supplying products to diverse markets, and it holds leading domestic market shares in areas such as industrial machinery, drilling machinery, UNIC machinery, non-ferrous metals, arsenic metal, and cuprous oxide. For the fiscal year ended March 31, 2025 (consolidated), net sales were ¥201 billion and operating income was ¥9.8 billion.

Established in 2003 through the integration of crushing and grinding technologies and sales capabilities of Kawasaki Heavy Industries and Kobe Steel, EarthTechnica is a comprehensive manufacturer of crushing and grinding equipment. The company possesses advanced technologies for crushing, grinding, and classification across a wide range of fields, including the aggregates sector, which supplies essential construction materials for infrastructure demand, the waste recycling sector, which contributes to a circular economy, the pharmaceutical sector, and the food sector. It holds the top domestic market share in the crushers market. For the fiscal year ended March 31, 2025 (non-consolidated), net sales were ¥17 billion and operating income was ¥0.9 billion.

Kawasaki Heavy Industries is a diversified engineering manufacturer engaged in a wide range of businesses, including ships, rolling stock, aircraft, motorcycles, gas turbines, gas engines, industrial plants, hydraulic equipment, and robots. Under its “Group Vision 2030,” the company has defined three priority fields: “A Safe and Secure Remotely Connected Society,” “Near-Future Mobility,” and “Energy and Environmental Solutions.” For the fiscal year ended March 31, 2025 (consolidated), net sales were ¥2,129 billion and operating income was ¥143 billion.

The share transfer will enable Furukawa to integrate EarthTechnica’s outstanding technological capabilities and customer trust, leading to significant advancements in its technological strength, productivity, cost competitiveness, and customer services within its industrial machinery segment.

Driven by the growing global emphasis on environmental protection, Furukawa plans to invest management resources in the environmental recycling sector, a major focus area for EarthTechnica.

In the global mining and quarry market, Furukawa boasts a strong track record and high recognition in the rock-drill segment, while EarthTechnica has established a reputation in the field of large-scale mining machinery. By combining the sales and service networks of both companies, Furukawa expects to expand its business domains to encompass the full spectrum of the mining and quarry industries—from upstream to downstream—leading to stronger overseas operations and synergy effects in international markets.

Houlihan Lokey served as the exclusive financial advisor to Furukawa.

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