The Deal Accelerates Our Global Deployment of the MISUMI QCT Model for Short Delivery Times with No Minimum Quantity Requirements
At a board meeting held October 17, 2012, our board of directors approved MISUMI's acquisition of all shares in Dayton Progress Corporation (Dayton), known for its brands DAYTON and PCS, as well as the components business (AD Components Business) of The Anchor Danly Company (AD), known for its brands DANLY IEM, Anchor Lamina and LEMPCO, for a total amount of $200 million (¥15.6 billionat ¥78/$). As a result, MISUM has entered into an acquisition agreement with the owner of both companies, Connell Limited Partnership of Boston (Connell).
Dayton was founded in 1946. AD Components Business was founded in 1922. Both boast long histories as leading manufacturers of die components in the US and European markets. Furthermore, their production methods leverage product standardization and product blanks, practices that promise a great deal of compatibility with MISUMI!ˉs short lead-time production system. Moreover, the companies possess strong technological capabilities and customer service regimes, as well as solid customer bases in the US and Europe.
By standardizing high-precision mechanical components, the MISUMI Group established in Japan the MISUMI QCT Model, which delivers high quality (Q) at low cost (C) with short delivery times (T) and no minimum quantity requirements. Since new management took over in 2002, MISUMI has placed a strategic focus on the overseas business. In 2004, we accelerated international expansion with the acquisition of the manufacturer SURUGA SEIKI. As a result, we have grown international sales eight-fold in the past 10 years. International sales grew to 27.5% of total sales from 8.6% over the same time period.
The primary objective of this acquisition is to accelerate global deployment of the MISUMI QCT Model. We have already established our MISUMI QCT Model and built out a supply regime capable of delivering on short lead times primarily in Japan, China and the rest of Asia. The acquisition of Dayton and AD Components Business, who have already achieved a short-delivery time production regime in the US and Europe, establishes a global short delivery-time supply regime virtually overnight and should accelerate MISUMI's global business expansion.
Additionally, die components makers Dayton and AD Components Business boast solid customer bases in the US and Europe, particularly among the Big 3 automakers in North America and European automakers. We hope to grow sales by targeting these customer bases with the MISUMI brand in not only the die components business but also the factory automation (FA) business as well.
Moreover, while MISUMI already enjoys a large share of the market in die components in Japan and the rest of Asia, Dayton and AD Components Business have large market shares in the US and Europe. The acquisition of these businesses solidifies our position as the No. 1 global supplier of die components. Additionally, we can expect synergies in a variety of aspects of the business, from cross-selling our complementary product offerings to bolstering cost competitiveness by leveraging economies of scale in production volumes and materials sourcing.
Moving forward, the MISUMI Group will aim to become the leading player providing behind-the-scenes support to the world's manufacturing industryby deploying our MISUMI QCT Model globally and strengthening competitiveness -- in terms of both cost and delivery times -- to beat out the competition in local markets.
Other News:
MISUMI Spends a Total of $200 Million on Acquisitions Including Dayton, America's Lrgest Maker of Die Components
EDAC Technologies Announces Acquisition of Smith-Renaud Assets
Dana Receives Four Supplier Quality Excellence Awards from General Motors
Trelleborg Sealing Solutions announces partnership with Earthrise
Timken to Announce Third-Quarter 2012 Financial Results on October 25
Dana Holding Corporation to Participate in Gabelli & Company's 36th Annual Automotive Aftermarket Symposium on Oct.
Tolomatic Online Electric Actuator Sizing Software Simplifies Linear Motion Systems
RKB attends KISNON 2012 in Seoul
