SUMIDA: Company News

Agreement Reached with Nihon Kohden to Acquire its Transformer Business and Establishment of a New Subsidiary

February 12th 2014
Press Release

We 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. 

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