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Kyocera to strengthen optical components business
Posted on Thursday, 26 March 2020 07:57
Kyocera has entered into a share and transfer agreement to buy NEC’s stock in Japanese components manufacturer Showa Optronics (SOC).

Following the deal, the buyer will own a 93.5 per cent stake in the target.

As of 1st June 2020, SOC will operate as a subsidiary of the acquiror’s under the name Kyocera Showa Optronics.

Established in 1954, the target makes a range of optical components, systems and lasers from its two manufacturing plants in Tokyo and Kanagawa.

Its offerings include precision large aperture lenses, optical filters, polarising beam splitters and precision aspheric mirrors.

SOC primarily targets high-valued added markets and makes equipment for customers in the space, semiconductor and medical equipment categories.

Through the acquisition, Kyocera aims to become one of the world’s leading optical component companies by expanding its product offerings in the laser market.

Furthermore, the combination of the enlarged group’s technologies will help generate savings.

SOC will also be able to utilise Kyocera’s worldwide sales network and production facilities to further expand its optical components business.

The buyer is no stranger to the acquisition trail; in December last year, it agreed to buy Mitsubishi Materials Trading’s retail jewellery business for an undisclosed sum.

Headquartered in Kyoto, Kyocera supplies solar power generating systems, mobile phones, printers and electrical components, among other devices, to customers across the automotive, communications and healthcare industries.

During the nine months ended 31st December 2019, the company generated sales of JPY 1,196 billion (USD 10.74 billion), down 1.4 per cent from JPY 1,214 billion in the corresponding period of 2018.

Zephyr, the M&A database published by Bureau van Dijk, shows there were 180 deals targeting optical instrument and lens manufacturers announced globally in 2019.

The largest of these took the form of an acquisition and involved Elbit Systems of America buying Harris Corporation’s US-based night vision business for USD 350.00 million.

© Zephus Ltd