MINEBEA MITSUMI Inc.
Announcement of Acquisition of All Shares of SUMIKO TEC CO., LTD.
MITSUMI ELECTRIC CO., LTD. ("Mitsumi Electric"), a subsidiary of MINEBEA MITSUMI Inc. (the "Company"), previously entered into a share transfer agreement (the "Share Transfer Agreement") with Sumitomo Metal Mining Co., Ltd. regarding the acquisition of the shares (the "Acquisition of Shares") of SUMIKO TEC CO., LTD. ("the Subject Company"), as announced in the press release dated July 29, 2022, titled "Announcement of Acquisition of All Shares of SUMIKO TEC CO., LTD." The Company is hereby pleased to announce that, today, Mitsumi Electric completed the Acquisition of Shares as well as the Subject Company has changed the name to Minebea Connect Inc. ("Minebea Connect").
1. Purpose of the Acquisition of Shares and the Company's Future Operating Policy
The Company's basic strategy is to identify the products as its core business called the "Eight Spears" in which the Company can demonstrate its strength, such as super-precision processing technologies and mass production technologies, and which would not be easily eliminated from the market and to provide the customers with new values by INTEGRATION* of such products. Connectors/switches are one of the "Eight Spears". The Company intends to further expand its connectors/switches business by enhancing its product portfolio.
Minebea Connect is a company that manufactures and sells various terminals for electronic and electrical equipment including press-fit terminals, as well as various connectors including waterproof connectors and automotive connectors. It demonstrates its strengths in the automotive connector market.
Minebea Connect and the Company have respective product portfolios, including the products of HONDA TSUSHIN KOGYO CO., LTD integrated recently, which can be complemented each other, and the Acquisition of Shares will enable us to achieve multiple synergistic effects. In respect of research and development, the Acquisition of Shares will enable the Company to expand its resource of design and development. In addition, when it comes to manufacturing, the Company will be able to improve quality and productivity by sharing and deploying know-how seamlessly between the companies. With respect to sales, the Company will be able to expect expansion of its overseas sales of automotive products that are Minebea Connect's strength, leveraging the Company's global sales network and overseas production capacities. Furthermore, the Company expects to generate synergies that are not limited to the connector field, such as the mutual use of the sales channels of the Company's group and Minebea Connect, and the application by Minebea Connect of the knowledge possessed by other divisions of the Company to the development of new products.
Through the Acquisition of Shares, the Company will provide increasing needs of high speed transmission in automotive products with advanced technology and wide range of choice, strengthen its efforts to enhance the expansion of its market share in not only the market of connectors for automotive but also areas beyond the market, thereby the Company will contribute to development of the manufacturing industries including automotive industry by expanding the scale of its connector business and enhancing its position in the connector market.
* INTEGRATION means "combining" rather than "simple gathering." The Company will evolve its "core products" by combining and utilizing its proprietary technologies and will create new products in various fields through the INTEGRATON of the evolved products.
2. Outline of Minebea Connect
|(1) Company name||Minebea Connect Inc.|
|(2) Location||4F Prime Shin-Yokohama Building, 2-3-19, Shin-Yokohama, Kohoku-ku, Yokohama-shi, Kanagawa, Japan|
|(3) Title and name of representative||Yoshiyuki Ebihara, President and CEO|
|(4) Business||Manufacture and sales of crimp-type terminal and related crimping machines and applicators, customer-designed pressed or molded parts or mechanical parts with connector functions, connectors for FPCs, and connectors for circuit boards and wire harnesses that mate therewith.|
|(5) Amount of capital||490 million yen|
|(6) Date of establishment||March 1, 1990|
|(7) Major shareholders and shareholding ratio||MITSUMI ELECTRIC CO., LTD.|
|(8) Consolidated sales||9,820 million yen (Fiscal Year Ended March 31, 2022)|
|(9) Relationship between
the Company and Minebea Connect
|(10) Principal subsidiaries||Minebea Connect(Thailand)Ltd.
Minebea Connect (Dongguan) Co.,Ltd.
3. Future Outlook
The impact of this transaction on the Company's consolidated business results for the fiscal year ending March 31, 2023 is expected to be minimal. If any event that needs to be disclosed, we will promptly disclose the relevant information.
End of document
|Company Name:||MINEBEA MITSUMI Inc.|
Representative Director, CEO & COO
(Code No. 6479, TSE Prime Market)
Corporate Communications and Investor Relations Office
Product information, contact and other context are subject to change without prior notice.