KYOCERA Acquires Power Tool Business from RYOBI
Acquisition aims to take advantage of synergies within Kyocera Group companies to expand industrial tools business globally
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KYOTO, JAPAN — January 10, 2018 — Kyocera Corporation (President: Hideo Tanimoto) today announced that it has acquired 80% of shares in Kyocera Industrial Tools Corporation, an enterprise established from the company split of Ryobi Limited’s (President: Akira Urakami) power tool |
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Kyocera has continually been expanding sales in its cutting tool business on a global basis as one of the leading companies in the field after having entered the market more than 40 years ago. Kyocera has been focusing its efforts on diversifying and expanding sales of products from its core of indexable tools to solid carbide tools, woodworking tools, as well as power and pneumatic tools for the construction industry.
Objectives
1. Full-scale entry into power tools market aiming for business expansion
The power and pneumatic tools business is expected to grow continuously from its current global market size of approximately 3 trillion yen. So far, Kyocera has strengthened its power tool business in the U.S. and European markets through targeted acquisitions including the Unimerco Group in Europe (now KYOCERA UNIMERCO A/S) in 2011, and SENCO Holdings, Inc. in August of last year (now KYOCERA SENCO Industrial Tools, Inc.). By acquiring the power tool business from Ryobi, which has a strong market position in Japan, Asia and Africa*1 encompassing a wide range of products with highly advanced technologies, Kyocera aims to take advantage of synergies with its relevant group companies in order to expand sales globally.
2. Product development and engineering utilizing Kyocera and Ryobi expertise
Kyocera aims to enhance product capabilities by not only using the expertise in product development and engineering possessed by Kyocera and Ryobi, but also by incorporating various kinds of components including power devices into its power tools. In addition, Kyocera aims to develop new products which enable productivity improvements through the utilization of Kyocera’s IoT and related technologies.
Outline of New Company
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| Company name | KYOCERA Industrial Tools Corporation |
| Headquarters | 762 Mesaki-cho, Fuchu-shi, Hiroshima-ken, 726-0033, Japan |
| Date of establishment | January 10, 2018 |
| Representative | Kenjiro Suzuki, President and Representative Director |
| Capital | 100 million yen |
| Shareholding ratio | Kyocera Corporation: 80%; Ryobi Limited: 20% |
| Number of employees | 1,492 including subsidiaries |
| Business outline | Development, manufacturing and sales operations of the power tool business |
| Sales locations | 48 sales offices in Japan (Ryobi Sales Co.*2) |
| Manufacturing location | 1 manufacturing plant in China (Ryobi Dalian Machinery Co., Ltd.*3) |
Outline of Sales Company
| Company name | RYOBI SALES CO.*2 |
| Headquarters | 1-145-1 Hisakata, Tenpaku-ku, Nagoya-shi, Aichi-ken, 468-0034, Japan |
| Date of establishment | February 1957 |
| Representative | Hirofumi Hirata, President and Representative Director |
| Shareholding ratio | KYOCERA Industrial Tools Corporation: 100% |
| Number of employees | 346 |
Outline of Manufacturing Company
| Company name | RYOBI DALIAN MACHINERY CO., LTD.*3 |
| Headquarters | No. 2 The Huanghai West 6th Road, Dalian Economic & Technological Development Zone, Dalian, Liaoning Province, 116600, China |
| Date of establishment | January 1994 |
| Representative | Yasuo Wada, President |
| Shareholding ratio | KYOCERA Industrial Tools Corporation: 66.6%; Ryobi Limited: 33.4% |
| Number of employees | 1,014 |
*1Kyocera does not plan to supply products under the Ryobi brand in North America, Europe or Oceania as the rights to use the Ryobi brand in these regions are held by a third party and are not included in the aforementioned acquisition.
*2 Company name is scheduled to change to Kyocera Industrial Tools Sales Corporation as of April 1, 2018.
*3 Company name is scheduled to change to Kyocera Ryobi (Dalian) Machinery Co., Ltd. by the end of 2018.
For more information about Kyocera Cutting Tool Business, please visit:
