Nippon Mirai Holdings Co., Ltd. signed an agreement to acquire radiation Measurement Device and Industrial X-ray CT Device Businesses of Hitachi, Ltd.
October 13, 2021
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Nippon Mirai Holdings Co., Ltd. signed an agreement to acquire radiation Measurement Device and Industrial X-ray CT Device Businesses of Hitachi, Ltd. (TSE:6501). on October 13, 2021. Under the terms, Hitachi will transfer the businesses to a newly formed subsidiary and Nippon Mirai will acquire the shares in the new company.
For year ending March 31, 2021, businesses had revenues of ¥8.7 million, net income of ¥0.5 million and operating income of ¥0.5 million. Transaction is expected to close on April 1, 2022. As of February 28, 2022, Hitachi, Ltd has scheduled the date of signing of the company split agreement and the effective date for the company split above and closing date of the share transfer was scheduled to be April 1, 2022.
As of March 24, 2022, Hitachi, Ltd concluded an amendment to the share purchase agreement and an absorption-type Company Split Agreement. The split is an absorption-type split under which Hitachi will be the splitting company and Nippon RayTech Co.,Ltd. will be the successor company. When the Company Split is executed, Nippon RayTech will issue 99 shares of common stock, and all of those shares shall be transferred to Hitachi.
The transaction is expected to close on June 1, 2022. The transaction is subject to customary closing conditions and regulatory approvals. Transaction will not have an effect of Hitachi's results.
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).