Arent Acquires Additional Shares of PlantStream, Making It a Wholly Owned Subsidiary
Date: February 25, 2021. Reason for the Additional Acquisition of Shares and Future Strategy
Arent and Chiyoda jointly established PS in 2020 to develop and sell “PlantStream®,” an innovative 3D CAD software equipped with automatic plant layout design functionality. Utilizing Chiyoda’s expertise in plant engineering and Arent’s advanced 3D CAD technology, “PlantStream®” has successfully transformed plant engineering by systematizing industry expertise into a structured form. To date, it has been adopted by approximately 25 EPC contractors and plant owners across 10 countries, covering a wide range of industries such as oil and gas, chemicals, ultrapure water, power, steel , and hydrogen. The software has been continuously enhanced, featuring core functionalities such as automatic piping routing, material and construction quantity estimation, and integration with existing software, leading to improved initial design quality and significant reduction in man-hours. Although PS has not yet achieved profitability in terms of operating income, it is projected to generate positive operating cash flow from this fiscal year onwards, securing a sustainable business foundation. After thorough discussions, Arent and Chiyoda have agreed that Arent will acquire Chiyoda’s shares and make PS a wholly owned subsidiary to enhance decision-making efficiency and streamline management operations. Despite the termination of the joint venture agreement, Arent will continue its technical collaboration with Chiyoda to drive further innovation and contribute to the advancement of the plant engineering industry. “PlantStream®,” developed in collaboration with Chiyoda, has been a pioneering product for Arent’s business model. Our partnership has laid the foundation for industry innovation. Moving forward, we will maintain a strong partnership with Chiyoda and work together to further advance the industry. PS’s business operations will remain unchanged, and customers can continue using ‘PlantStream®’ without interruption.2. Overview of the Subsidiary to be Acquired
| Item | Details |
|---|---|
| Name | PlantStream Inc. |
| Location | 3-23-17 Takanawa, Minato-ku, Tokyo |
| Representative | CEO: Seitaro Narue, Co-CEO: Takeshi Oda |
| Business | Development and sales of software for the plant engineering industry |
| Capital | 100 million yen |
| Established | July 1, 2020 (Renamed on August 3, 2020) |
| Major Shareholders & Ownership Ratio | Chiyoda Corporation: 50%, Arent Inc.: 50% |
3. Overview of the Seller
| Item | Details |
|---|---|
| Name | Chiyoda Corporation |
| Location | 4-6-2 Minatomirai, Nishi-ku, Yokohama, Kanagawa |
| Representative | President & CEO: Koji Ota |
| Business | Comprehensive engineering business |
| Capital | 15,014 million yen |
| Established | January 20, 1948 |
| Net Assets | 7,915 million yen |
| Total Assets | 438,539 million yen |
| Major Shareholders & Ownership Ratio | Mitsubishi Corporation: 60.23% (as of September 30, 2024) |
4. Number of Shares Acquired, Acquisition Price, and Shareholding Before and After Acquisition
| Item | Details |
|---|---|
| Shares Owned Before Acquisition | 1,837 shares (Voting Rights: 1,837, Ownership Ratio: 50%) |
| Shares to be Acquired | 1,837 shares |
| Acquisition Price | 225 million yen |
| Shares Owned After Acquisition | 3,674 shares (Voting Rights: 3,674, Ownership Ratio: 100%) |
5. Schedule (Planned)
| Item | Date |
|---|---|
| Board Resolution | February 25, 2025 |
| Contract Signing | March 11, 2025 (Planned) |
| Share Acquisition Execution | March 17, 2025 (Planned) |
6. Changes in Executive Management
At today’s Board of Directors meeting, Arent resolved to appoint Takeshi Oda, currently a Director of Arent and Co-CEO of PS, as Executive Director of Arent to strengthen the PS’s business. Additionally, following the full acquisition of PS , Takehito Miki, currently Arent’s Chief Revenue Officer (CRO) and Chief Operating Officer (COO) of PS, will be appointed as CEO of PS. This new leadership structure, with two executives who have been driving both development and sales, aims to further enhance PS’ business.| Name | New Position | Current Position |
|---|---|---|
| Takeshi Oda | Executive Director of Arent Inc. & Co-CEO of PlantStream Inc. | Director of Arent Inc. & Co-CEO of PlantStream Inc. |
