Sumitomo Forestry Co. will raise its stake in GEOLIVE Group Corp. to 30.3% and transfer four of its subsidiaries in a wide-reaching capital and business alliance aimed at integrating logistics and construction operations across Japan’s building materials sector.
The company plans to acquire 3.61 million shares in GEOLIVE, currently held by Benia Shokai Co., Ltd., representing 27.19% of GEOLIVE’s issued shares. Sumitomo Forestry already holds 3.11%, bringing its total stake to 30.3% after the transaction. Based on GEOLIVE’s 132,412 voting rights as of March 31, 2025, the acquisition corresponds to 27.25% of total voting rights. The transaction, scheduled for October 31, 2025, qualifies as an “act of buying up” under Japan’s Financial Instruments and Exchange Act.
The two companies signed a capital and business alliance agreement on August 29. Sumitomo Forestry said the collaboration is intended to create a resilient and scalable supply chain by integrating the logistics, processing, and construction networks of both firms. The partnership also aims to address industry-wide challenges posed by Japan’s aging population, shrinking housing demand, and growing labor shortages in the construction sector.
As part of the agreement, GEOLIVE will acquire four subsidiaries from Sumitomo Forestry for a total of ¥2,980 million ($19.87 million), with advisory fees amounting to ¥90 million ($0.60 million). The transaction includes Igetafuji Co., Ltd., Sumirin Sash Center Co., Ltd., and Sumirin’s wholly owned subsidiaries, Jyukyo Co., Ltd. and Jyukyo Wintech Co., Ltd. The companies operate primarily in the Chubu and Western Japan regions and provide housing materials distribution, aluminum sash fabrication, and construction-related services.
Igetafuji, based in Nagoya, recorded sales of ¥19,841 million ($132.27 million) and net income of ¥160 million ($1.07 million) in 2024. Sumirin Sash Center, located in Ibaraki Prefecture, posted sales of ¥2,950 million ($19.67 million) and net income of ¥144 million ($0.96 million). Combined with Jyukyo and Jyukyo Wintech, the four companies generated total revenue of ¥9,562 million ($63.75 million) and net income of ¥202 million ($1.35 million) in 2024.
Sumitomo Forestry said the alliance would eliminate structural boundaries between trading firms and wholesalers by creating a unified, end-to-end distribution model. The companies plan to use digital tools to streamline quoting and delivery, introduce structural frame supply systems to reduce on-site labor, and expand offerings in carbon-neutral materials and certified domestic timber.
The companies are also responding to tightening environmental regulations and increasing demand for long-lasting, high-performance housing. Sumitomo Forestry’s long-term strategy, "Mission TREEING 2030," calls for widespread use of wood-based construction to promote carbon absorption and long-term carbon storage. The company operates globally across forest management, building materials manufacturing, custom housing, mid- to large-scale wooden structures, real estate, and biomass power generation.
GEOLIVE, based in Tokyo, focuses on domestic distribution of building materials and housing equipment. It is expanding its portfolio to include energy-related products such as solar power systems and certified low-carbon materials. The company is also enhancing support services for residential builders and increasing its non-residential construction capabilities through targeted acquisitions.
By combining their operations, Sumitomo Forestry and GEOLIVE aim to strengthen market presence, enhance productivity across the building materials sector, and position themselves for long-term structural and environmental shifts in Japan’s construction landscape.
