SUMIDA: Company News
Agreement Reached with Nihon Kohden to Acquire its Transformer Business and Establishment of a New Subsidiary
February 12th 2014 Press ReleaseWe are pleased to announce that Sumida group has reached a basic agreement with Nihon Kohden group that Sumida Power Technology Co., Ltd., planned to be newly established as a wholly-owned subsidiary of Sumida Electronic Components Co., Ltd. will acquire Nihon Kohden’s transformer business.
1. Purposes of this acquisition
Sumida will acquire transformer business from Nihon Kohden as part of our strategies aiming to expand a promising medical-related field in the industry segment, which is one of our core business segments. Nihon Kohden, a leading manufacturer and provider of medical electronic equipments such as electroencephalograph and biological information monitor has been engaged in development and sales of power transformers, high-frequency transformers and reactors for medical and industrial use in the past 50 years. On the other hand, Sumida Electric Co., Ltd. has been producing transformers and other products for Nihon Kohden since June, 2009 when it absorbed Concord Corporation which was Nihon Kohden’s manufacturing company at the time. With this background, Sumida’s proposal to acquire the transformer business from Nihon Kohden has been accepted by them as it also matched their strategies.
2. Profile of Selling Companies
| Company Name | Nihon Kohden Corporation |
| Headquarters' Location | 1-31-4 Nishiochiai, Shinjyuku-ku, Tokyo, Japan |
| Representative | Fumio Suzuki, Representative Director and President |
| Established | August 7, 1951 |
| Capital Amount | 7,544 Million yen （as of March 31, 2013） |
| Sales Amount | 87,100 Million yen （for fiscal year ended March 31, 2013） |
| Business Lineup | Development, manufacture and distribution of medical electronic equipments |
| Number of Employees | 1,875（as of March 31, 2013） |
| Company Name | Nihon Kohden Tomioka Corporation |
| Headquarters' Location | 486 Nanokaichi, Tomioka City, Gunma, Japan |
| Representative | Representative Director and President Toshitsugu Izawa |
| Established | May, 1962 |
| Capital Amount | 496 Million yen （as of March 31, 2013） |
| Sales Amount | 87,100 Million yen （for fiscal year ended March 31, 2013） |
| Business Lineup | Manufacture of medical electronic equipments |
| Number of Employees | Approx. 720 （as of December 31, 2013） |
3. Summary of Acquired Business
| Intended Business | Transformer business |
| Headquarters' Location | 1-31-4 Nishiochiai, Shinjyuku-ku, Tokyo, Japan |
| Business Lineup | Development and distribution of medical transformers, industrial transformers, reactors and various other coils |
| Number of Employees | Approx. 10 |
4. Schedule
(1) Establishment of a new subsidiary of Sumida Electric Co., Ltd
The following new company will succeed Nihon Kohden's transformer business.
| Company Name | Sumida Power Technology Co., Ltd. |
| Representative | Representative Director and President Tomoharu Suseki |
| Headquarters' Location | 604-1 Motohara, Sanadamachi, Ueda City, Nagano, Japan |
| Established | To be established in March, 2014 |
| Business Lineup | Development, manufacture and distribution of medical industrial & high-frequency transformers, reactors and various other coils |
| Customers | Manufacturers of medical and industrial equipments in Japan and overseas |
| Fiscal Year Ending | December 21 |
| Number of Employees | Approx. 110 |
| Capital Amount | 10 Million yen (Number of shares: 200) |
| Shareholders | Sumida Electric Co., Ltd. 100% |
(Note) The above new company will be included in Sumida group's consolidation.
(2) Completion of business transition: March 31, 2014
(3) Commencement of business at the new company: April 1, 2014
5. Others
Sumida Power Technology’s operational results for 2014 are included in Sumida group’s consolidated earnings forecast for 2014 which has been announced on February 12, 2014.
Please click on the press release link above for the pdf version of this article.