Amada Co., Ltd Acquires Miyachi Corporation
February 25, 2013
The takeover bid price is 870 Japanese yen, a premium of 23.58 percent above the most recent stock market share price and 60.22 percent above the average share price for the past six months.
Amada Co., Ltd. is a leading Japanese company, headquartered in Isehara, Kanagawa, which develops, manufactures, sells and services products and systems for metal sheet processing, metal cutting, pressing, and machine tooling. The company was established in 1946 and is listed on the Tokyo Stock Exchange (6113:Tokyo). It has 60 subsidiaries (17 in Japan and 43 overseas) and 6,467 employees as of March 2012. Its consolidated net sales for the fiscal year ending March 2012 was 186 billion Japanese yen.
The takeover bid is intended to take advantage of synergy between Amada and Miyachi, aimed at enhancing mutual technology and market share. Synergy effects include development of new technology and products by combining laser technologies; application of Miyachi's welding technology to Amada's metal processing applications; broadening of markets and sales through offering comprehensive solutions that combine technologies; increasing sales to achieve Amada's three-year sales plan, which aims at consolidated sales of 300 billion Japanese yen; development of global business by using both companies' sales and servicing networks and brand recognition; and increasing operational efficiency by reducing costs through consolidation of facilities and functions worldwide.
Amada will continue support for Miyachi's individual initiatives, and will maintain Miyachi's independent business operations and the Miyachi brand.
"Building a firm collaborative relationship with Amada based on our excellent synergy will help us extend our technology into new areas and collaborate on system business, enabling Miyachi to continuously enhance competitiveness and adjust to fluctuations in the economic environment," said Dave Fawcett, President and CEO. "Miyachi believes it is the best choice for maximizing the value of the company and its shareholders."
About Amada Miyachi America
Since 1948, Amada Miyachi America, Inc. has worked to achieve one goal: to solve customer's manufacturing challenges. Knowing there is no one solution that fits all, the company strives to provide customers with innovative and reliable manufacturing technology solutions in an effort to be their single source provider. Amada Miyachi America manufactures equipment and systems for resistance welding, laser welding, laser marking, laser cutting, hermetic sealing and hot bar reflow soldering and bonding. The company serves a wide range of markets including medical devices, battery, aerospace, automotive and electronic components. Amada Miyachi America is an ISO9001 certified company. Contact Amada Miyachi America at email@example.com. Learn more about the company's products and services at www.amadamiyachi.com.