ENVALITH
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Solasto Corporation

6197・Prime Market・Services

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株式会社ソラスト logo
Solasto Corporation6197

Business

SOLASTO Corporation originated in 1965 as a training institution for medical clerical administrators, and today operates as a comprehensive healthcare service group built on three core businesses: medical administrative outsourcing and staffing (Medical Business), day care, home-visit, and facility-based nursing care (Nursing Care Business), and childcare services centered on Licensed Nursery Schools (Childcare Business). Including 17 consolidated subsidiaries, the group operates approximately 1,300 medical institutions, 688 nursing care business locations, and 67 childcare facilities. Its primary customers are hospitals and clinics, elderly individuals requiring long-term care and their families, and dual-income households with infants and young children, and it provides a broad range of services across the social infrastructure domains of medical care, nursing care, and childcare. An MBO was finalized in March 2026, and procedures for delisting and becoming a wholly owned subsidiary are currently underway.

Business Model

In the Medical Business, the company secures continuous revenue through outsourcing and staffing contracts with medical institutions, and enhances profitability by improving unit prices through fee revision negotiations. The Nursing Care & Childcare Business has a revenue structure based on publicly regulated pricing systems—nursing care insurance and standard childcare fees—with improvements in occupancy and utilization rates serving as the main lever for profit improvement. Since both businesses are labor-intensive, securing personnel, improving treatment conditions, and enhancing productivity through technology utilization are key to profitability.

Company Strengths

In the Medical Business, the company provides medical administrative services, related peripheral services, and hospital management support services nationwide to approximately 1,300 medical institutions. With a track record of over 40 years since fully commencing medical administrative outsourcing operations in 1979, the company has built continuous business relationships in both outsourcing operations and staffing services. Price revision negotiations for existing outsourcing operations progressed further in FY2025 (ending March 2025) compared to the previous year, achieving revenue of ¥73,834 million.

Of total revenue of ¥141,144 million, the Medical Business accounts for 52%, the Nursing Care Business 40%, and the Childcare Business 8%, reflecting diversification across three businesses. With low dependence on any single business and each business having its own independent public pricing system and demand base, the structure mitigates the impact of a downturn in any specific segment on overall performance. In FY2025 (ending March 2025), all three businesses achieved revenue growth.

Since 2014, the company has made subsidiaries of multiple nursing care operators through M&A, including Best Care, Nippon Care Link, Mitsui Sumitomo Kaijo Care Net (now Solast Care), and Possible Ika Kagaku, and operates 688 directly-managed nursing care facilities across the Kanto, Chukyo, and Kansai regions. With diverse service formats such as Home-Visit Care, Adult Day Care, Group Homes, and Paid Nursing Homes, the company has achieved regionally-rooted, area-based expansion.

ENVALITH's Perspective

On March 24, 2026, a tender offer by MP-2605 Co., Ltd. was announced, and the offer was successfully completed with 48,373,328 shares tendered. Upon settlement on May 18, 2026, the tender offeror is expected to acquire more than 50% of voting rights and become the parent company of the Company. Delisting is planned, and both the FY2026 (ending March 2026) earnings forecast and dividend forecast are undisclosed. Investment opportunities in the public market have effectively disappeared, and the focus for remaining shareholders is on responding to subsequent procedures such as a squeeze-out.

In FY2025, net sales were ¥141,144 million (up 2.7% year on year) and operating profit was ¥7,345 million (up 4.7% year on year), achieving an increase at the operating profit level, but profit attributable to owners of parent decreased to ¥3,740 million (down 5.6% year on year). The main causes were an impairment loss of ¥751 million (versus ¥272 million in the previous year) in the Nursing Care & Childcare Business and tender offer-related expenses of ¥397 million associated with the MBO, both recorded as extraordinary losses. The increase in impairment losses warrants continued attention as a concern regarding the profitability of nursing care facilities.

Under the previous medium-term management plan, the Company targeted net sales of ¥175,500 million and operating profit of ¥10,000 million for FY2029, but with the going-private transaction resulting from the MBO, verification of progress in the public market is no longer possible. The FY2025 operating profit margin remained at only 5.2%, indicating that a substantial improvement in profit margin would be needed to achieve the target. Cost pressures from external factors—persistently high personnel recruitment costs, rising prices (utilities and food costs), and increasing social insurance premium rates—continue, and attention is focused on the direction of management strategy after going private.

Growth Strategy

Following the MBO going-private transaction, the company is pursuing structural profitability reforms driven by human capital management and technology

The company continued to make progress on price revision negotiations for existing outsourced operations, achieving a greater revision effect in FY2025 than in the prior year. Medical Business revenue was ¥73,834 million (up 3.7% year on year); however, due to enhanced compensation improvements and IT investment, operating profit declined to ¥4,173 million (down 4.9% year on year), with the operating margin falling to 5.7%. Balancing price revisions with investment remains a challenge.

The company consolidated directly-operated nursing care facilities from 709 to 688, promoting improved Adult Day Care (Day Service) utilization rates, higher facility occupancy rates, and reduced external labor costs. FY2025 operating profit was ¥2,750 million (up 24.0% year on year), with the operating margin improving to 4.9%. An increase in impairment losses (¥751 million) suggests profitability challenges at certain facilities.

Effective April 1, 2025, following an organizational restructuring, the Smart Hospital Business, previously included in Others, was integrated into the Medical Business segment. The company aims to enhance the added value of the Medical Business through productivity improvements from the transition to next-generation operations and new IT investment (executed as planned for FY2025).

The tender offer by MP-2605 Kabushiki Kaisha was completed in May 2026. Following delisting, the company has established a management environment free from short-term shareholder pressure, enabling agile execution of medium- to long-term measures such as compensation improvements, IT investment, and business restructuring. Post-MBO, the company restructured its financial structure by repaying existing borrowings of ¥14.8 billion using a loan from the new parent company (credit line of ¥19.0 billion).

Last updated: July 19, 2026