TOKYO, November 11, 2025 — KKR, a leading global investment firm, and Forum Engineering Inc. (“Forum Engineering”; TSE stock code 7088), announced today that KKR will launch a tender offer for the common shares and share options of Forum Engineering (the “Tender Offer”) through KJ003 Co., Ltd. (the “Offeror”), an entity owned by investment funds managed by KKR. Forum Engineering’s Board of Directors has resolved to support the Tender Offer and recommend that shareholders tender their shares.1
The Tender Offer will commence on November 11, 2025 and is expected to run until December 23, 2025. The Tender Offer price will be JPY 1,710 per common share, representing a 40.74% premium over the simple average closing price of Forum Engineering’s stock for the six months ending November 7, 2025. The Tender Offer price per share option will be JPY 1.
In conjunction with this Tender Offer, KKR has reached an agreement with Mr. Izumi Okubo, the founder of Forum Engineering (who holds a 51.7% ownership stake when combined with shares held by La Terre Next General Incorporated Association (“La Terre Next”) and La Terre Holdings Co., Ltd. (“La Terre Holdings”)), regarding the implementation of the Tender Offer and the take-private of Forum Engineering. KKR has entered into tender agreements with Mr. Izumi Okubo and La Terre Next whereby each will tender their entire respective 7.51% and 7.11% stakes in Forum Engineering into the Tender Offer. Also, major shareholder La Terre Holdings has expressed its support for the resolution to privatize Forum Engineering, and has agreed to tender its 37.07% stake into a planned tender offer by Forum Engineering for its own shares (the “Self-Tender”) that will follow the successful completion of the Tender Offer.
Furthermore, following the completion of the Tender Offer and Self-Tender, Mr. Okubo plans to indirectly re-invest via La Terre Next Co., Ltd. in KKR-managed investment vehicles that will own Forum Engineering.
Forum Engineering is a leading provider of engineering staffing services in Japan and specializes in connecting manufacturing companies with skilled electromechanical engineers. Forum Engineering enhances the long-term career development of its 4,500 full-time engineers by providing structured training, competitive compensation, and opportunities to gain valuable experience across industries and clients.
Funds for this investment are being contributed predominantly from KKR’s Global Impact Fund II. KKR’s Global Impact Strategy invests in companies whose products and services make measurable contributions to the United Nations Sustainable Development Goals (“SDGs”). This is the Global Impact Strategy’s first investment in Japan, with Forum Engineering directly contributing towards SDG 8 (Decent Work and Economic Growth) by providing skilled workforce solutions that enhance productivity and innovation across Japan’s industrial base.
George Aitken, Managing Director and Head of Global Impact Asia Pacific at KKR, said, “Forum Engineering is directly addressing the widening skills gap in Japan by connecting skilled engineers with companies driving innovation and economic growth. Forum Engineering’s workforce of 4,500 full-time engineers also benefit from enhanced training and valuable experience across a range of industries and clients. We’re proud to support Forum Engineering as it expands its AI skills matching platform, invests further in training and development and introduces a broad-based equity program for its employees.”
Tsutomu Sato, Representative Director, President and CEO of Forum Engineering, said, “KKR’s investment provides a strong foundation to accelerate our long-term growth. Japan’s engineering services industry is at a major turning point due to demographic change. At the same time, rapid advances in generative AI are transforming industrial structures. By taking the Company private with KKR as our strategic partner, we can focus on evolving our business model for the next era without being constrained by short-term performance pressures. Together with KKR, we aim to further develop our specialized staffing services for mechanical and electrical engineers into a robust model that can compete not only in Japan, but on the global stage.”
KKR has a strong track record of investing in workforce skills development under the Global Impact Strategy, with prior investments including PHINMA Education, a leading vocational-focused degree provider in the Philippines, Davante, a leading European vocational education and professional training provider, and Lightcast, a labor market analytics software platform provider in the United States. KKR has been investing in Japan for nearly two decades and manages more than US$20 billion in assets under management across all strategies.
In the event that KKR successfully acquires Forum Engineering, KKR intends to implement a broad-based employee ownership program that will allow all employees of Forum Engineering to hold an ownership stake in the Company. KKR has introduced similar programs in its prior investments in Japan, including Bushu Pharmaceuticals and Yayoi.
For details regarding the Tender Offer, please refer to the full text of the release issued by the Offeror today titled “Notice Concerning Opinion in Favor of, and Recommendation to Tender in the Tender Offer for the Company’s Shares, Etc. by KJ003 Co., Ltd.”