Nidec continues acquisitions in Europe in the motor and electrical equipment sector
Nidec: “for everything that spins and moves”
Nidec acquired the Italian electrical machinery construction and repair company Motortecnica s.r.l. on May 15, 2015 via its Italian subsidiary Nidec ASI S.p.A. (formerly, Ansaldo Sistemi Industriali S.p.A), which Nidec had acquired in May 2012.
Motortecnica was established in 1989 in Salerno (Italy) by Antonio Iorio for the repair of electrical machines. Motortecnica has 77 employees and € 11 million in revenues for the fiscal year ending with December 31, 2014.
Motortecnica is focused on:
planning and production of electric machines such as motors and generators
construction of electric machine parts: stator coils, rotor coils, connections, whole rotors, whole stators
diagnostics and repair of electric machines
Motortecnica moved to new headquarters in September 2013 workshops and factory includes:
Automatic brazing machine MPM 3000
CNC Machining units
Cut and skin
Automatic Meter Zeiss
Alternating voltage generator 50 kV – 200 kVA
Ridgway Taping machine
Stator coil spindle-moulding machine
Roebel Transposition press
Balancing machines maximum 30 tons
Motortecnica invests in equipment, technology and production and maintenance:
2008: € 1 million
2009: € 2 million
2010: € 2.5 million
2011: € 1.5 million
2012: € 1 million
2013: € 2 million
2014: € 1.2 million
Nidec ASI S.p.A. (formerly, Ansaldo Sistemi Industriali S.p.A)
The GROHE Group owns 72.3% of Joyou AG, thus Joyou AG became a LIXIL subsidiary in January 2014. Joyou AG had an IPO at the Frankfurter Stock Exchange in 2010.
Joyou AG recently filed for bankruptcy, and on June 3, 2015, LIXIL announced a restatement of accounts and projections, reducing income statements.
LIXIL announced income reductions due to the Joyou AG bankruptcy filing:
FY 2013 (ending March 31, 2014) net income reduced by: YEN 23.8 billion (US$ 191 million)
FY 2014 (ending March 31, 2015) net income reduced by: YEN 9.4 billion (US$ 76 million)
FY 2015 (ending March 31, 2016) net income reduced by: YEN 33 billion (US$ 26.5 million)
Total net income reductions (net losses): YEN 66.2 billion (US$ 532 million)
LIXIL plans to increase international business to half of its sales, and these losses represent a setback for LIXIL’s globalization plans – one of Japan’s new companies striving to overcome Japan’s “Galapagos effect”.
Lixil Corporation (“Link to Good Living”), TSE-Code 5938, manufactures building materials and housing equipment and operates home and home building centers.
LIXIL was formed on April 1, 2011 by the merger of:
Softbank and GungHo jointly acquired 51% in October 2013 for US$ 1.5 billion
On June 1, 2015, SoftBank announced an investment to increase the ownership of Supercell stock from 50.5% to 73.2% on a fully diluted basis. This transaction had closed on May 29, 2015.
While Softbank did not officially disclose details of this transaction, VentureBeat/GamesBeat reported that SoftBank this time paid US$ 1.2 billion for this additional 22.7% of ownership. Thus by dividing US$ 1.2 billion by 22.7% we can calculate a market value of US$ 5.3 billion.
Supercell is reported to have achieved revenues of US$ 1.7 billion and income of US$ 0.5 billion in 2014.
Diesel engine maker Yanmar to partner with generator manufacturer Himoinsa
Yanmar and Himoinsa to provide solutions for energy markets including cogeneration
On April 27, 2015, diesel engine maker Yanmar and electricity generator maker Himoinsa announced a partnership, including Yanmar to acquire 70% of Himoinsa, to strengthen their solution business for energy markets including cogeneration.
Both Yanmar and Himoinsa are privately held companies, so the amount of information released is quite thin, however we can expect this partnership to help Himoinsa to strengthen business in Asia, where Himoinsa is active since 1999 and currently achieves about 20% of business, while Yanmar will be able to strengthen business particularly in the Hispanic parts of the world.
On the technical and product side, we can expect a range of jointly developed products.
Yanmar has supplied diesel engines for Himoinsa generators since 2006.
Himoinsa – “The Energy”
Himoinsa was founded in 1982, and is based in San Javier, Murcia, Spain.
Himoinsa manufactures and markets products including:
diesel generators from 3 kiloWatt to 3 MegaWatt
fas generators from 3 kiloWatt to 3 MegaWatt
diesel generators from 8 Watt to 3.5 MegaWatt
lighting towers up to 1.32 Mega-Lumen
Annual revenues are on the order of US$ 300 million:
50% of revenues in Europe and Africa
30% of revenues in the Americas
20% of revenues in Asia Pacific, where Himoinsa started in 1999.
Currently nine production centers, including:
Headquarters and main factory in Murcia, Spain, including R&D Centre.
Plant Metal 1, Murcia
Plant Metal 2, Murcia
Himoinsa, China in Changzhou (Jiangsu)
Hipower Systems, Lenexa, Kansas, USA
Genelec S.A.S, Villefranche sur saone, France.
Control & Switchgear Himoinsa PVT Ltd, production site at Pantnagar, Uttaranchal, India.
Consolidated revenues: YEN 650.7 billion (US$ 5 billion) FY 2013, ended March 31, 2014
Consolidated operating income: YEN 44.8 billion (US$ 0.37 billion) FY 2013, ended March 31, 2014
Group employees: 16,678 as of March 31, 2014
Yamaoka Magokichi (山岡 孫吉, March 22, 1888 – March 8, 1962) founded the company “Yamaoka Engine Manufacturing” (山岡発動機工作所) in March 1912, trading in gas engines. In 1921 the brand/trademark Yanmar (ヤンマー) was created.
In 1920 the company began to produce small oil engines for agricultural applications.
In 1947 the company began to produced small diesel engines for fishing boats, and in 1952, the company name was changed to Yanmar Diesel KK (ヤンマーディーゼル株式会社).
In 2010 the company adopted the slogan “Solutioneering Together”.
Transition from analog printing to digital printing drove coding and marking printer Domino to partner with a stronger company
Domino valued at 1.03 billion pounds (US$ 1.5 billion)
97% of today’s printing is analog, however there is a transition now to digital printing. Domino Printing Sciences is specialized on analog printing and now transitioning to digital printing, and needed a financially stronger partner to support increasing R&D costs and to finance expansion into the rapidly growing digital printing markets.
Brother Industries announced its intention to acquire publicly traded Domino Printing Sciences plc following the acquisition process prescribed in the UK for a total of around 1.03 billion pounds.
Domino Printing Sciences plc. “Domino. Do more.”
Domino Printing Sciences plc was founded as a spin-out from Cambridge Consultants in 1978 by Graeme Minto in Cambridge, UK, building on continuous inkjet printing technology (CIJ), and today has about 2300 employees and annual revenues of UKL 350 million (= US$ 526 million).
Domino explains its business in a series of infographics on Pin-it:
Brother Industries (ブラザー工業株式会社) was originally founded in 1908 as Yasui Sewing Machine Shoukai (安井ミシン商会) by Kanekichi Yasui (安井兼吉) as a producer of sewing machines. Today’s Chairman Yoshiro Yasui is a descendant of the founder.
On January 15, 1934, Nihon Sewing Machine Production KK (日本ミシン製造株式会社) was established, which was renamed Brother Industries KK (ブラザー工業株式会社) in 1962.
Currently (FY2014) Brother Industries has consolidated annual revenues of YEN 616 Billion (=US$ 5.2 billion), and it’s market capitalization as of April 22, 2015 is YEN 524 billion (US$ 4.4 billion).
Brother Industries is in the following main business areas:
Dentsu continues acquisition of digital and mobile agencies in Europe and Israel
To overcome cultural issues of a traditional Japanese leading corporation, Dentsu acquires via London based Dentsu Aegis Network
On April 20, 2015 Dentsu announced another investment in its quest to strengthen its global footprint and to strengthen capabilities in mobile and digital: Dentsu acquires Israeli digital performance agency abaGada Internet Ltd..
abaGada Internet Ltd. – performance marketing: “Building your online marketing strategy to deliver outstanding results”
abaGada Internet Ltd. was founded by current CEO, Eval Chen, in May 2010 in Tel Aviv, Israel, and employs about 22 people.
Revenues were about UKL 3.5 million in the year ended December 2014.
abaGada performs search engine marketing (SEM) to increase customers’ website traffic, analysis of customer and user behavior.
Dentsu plans to rebrand and integrate abaGada into Dentsu’s iProspect brand.
abaGada as Dentsu’s technology hub in Israel
Many large global corporations have operations in Israel to link into Israeli’s legendary innovative strengths. Israel’s technology strength and attraction for Japanese corporations was recently visualized at a series of events in Tokyo, e.g. The Israeli Venture Fund meeting in Tokyo on March 4, 2014.
With the acquisition of abaGada, Densu now also has an antenna into Israel’s innovations.
Dentsu and Dentsu-Aegis
Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.
Sir Stephen Gomersall on corporate governance: Board Meetings should be like sparkling water – not like tea
Globalization and the art of tea
Hitachi – Japan’s most iconic corporation – under the leadership of Chairman & CEO, Hiroaki Nakanishi embarked on the “Smart Transformation Project” to globalize, to face a world where value creation has moved from manufacturing to innovation and solving customer’s problems, and to overcome long years of stagnation and low profits or losses, despite strong technology capabilities.
One of the most important brains behind Hitachi’s reinvention and globalization is Sir Stephen Gomersall. After a long and successful career as diplomat in the British Foreign Service, culminating in the years as British Ambassador to Japan 1999-2004, Sir Stephen joined Hitachi in 2004 as the first foreigner responsible for proposing and implementing Hitachi’s overseas regional strategy. Later Sir Stephen became responsible for all of Hitachi’s business in Europe as Chairman and Chief Executive of Hitachi Europe, and in addition Sir Stephen also served as Director on the Board of all Hitachi 2011-2014 overseeing all of Hitachi Group’s business as Board Director. With Sir Stephen’s leadership Hitachi achieved major business breakthroughs in Europe.
On March 5, 2015, Sir Stephen gave the “Princess Chichibu Memorial Lecture to the Japan British Society at Ueno Gakuen University in Tokyo with deep insights on Japan-British relations, on comparison of Britain’s and Japan’s position in the world, and on the challenges of globalization facing Japan and Japanese corporations – in particular Hitachi.
Sir Stephen is very clear that there is no alternative to globalization: “Globalisation poses tough challenges for Japanese companies, but is the only way forward”.