New Cosmos Electric Co., Ltd. (JASDAQ:6824) concluded a contract to acquire 66.6% stake in FIGARO Engineering Inc. from Tokuyama Corp. (TSE:4043) for ¥4.3 billion on May 12, 2016. New Cosmos Electric Co., Ltd will acquire 0.06 million shares of FIGARO Engineering Inc. After the transaction, New Cosmos Electric Co., Ltd. will hold 66.6% stake in FIGARO Engineering.

New Cosmos Electric Co., Ltd will fund the transaction through funds on hand and bank loans. After the transaction, FIGARO Engineering Inc. will operate as subsidiary of New Cosmos Electric Co., Ltd. FIGARO Engineering Inc. reported net assets of ¥3.13 billion, total assets of ¥4.44 billion, sales of ¥5.74 billion, operating profit of ¥437 million and net income of ¥363 million during the year ending March 31, 2016. The Board of Directors of New Cosmos Electric Co., Ltd passed a resolution for the transaction on May 12, 2016.

The transaction is expected to be completed on July 1, 2016.