News Release
Conversion of Toyo Rikagaku Kenkyusho Co., Ltd. into a Subsidiary
January 21, 2015
Nippon Light Metal Co., Ltd.
Conversion of Toyo Rikagaku Kenkyusho Co., Ltd. into a Subsidiary
Nippon Light Metal Co., Ltd. (Shinagawa-ku, Tokyo, President: Ichiro Okamoto; hereinafter referred to as NLM) today announced that it has concluded and executed share transfer agreements with major shareholders of Toyo Rikagaku Kenkyusho Co., Ltd. (Tsubame City, Niigata Prefecture, President: Takeshi Shimakura; hereinafter referred to as Toyo Rika) in order to convert it into a subsidiary (51.6% ownership) through the additional acquisition of 28% of the outstanding shares of Toyo Rika. The details are described below.
1. Background and objective of conversion of Toyo Rika into a subsidiary
As expressed by its corporate slogan—“Aluminum is our foundation. We will use it as a springboard to new heights.”—NLM has been a fully integrated aluminum manufacturer offering diverse products ranging from aluminum raw materials to fabricated products since its foundation.
On the other hand, possessing the world’s leading surface decoration technology and superior quality control for non-ferrous metal fabrication, Toyo Rika is a comprehensive manufacturer with integrated production lines handling die design, pressing, welding, assembly, surface treatment, and fabrication of finished products.
NLM and Toyo Rika had been cultivating a collaborative relationship in terms of both operations and capital. The business tie-up between the two companies started in September 2011. NLM acquired 23.6% of the outstanding shares of Toyo Rika in November 2013 and made it an equity-method affiliate of NLM.
The conversion of Toyo Rika into a subsidiary is expected to lead to synergistic benefits through the greater use of the NLM Group’s business network and management resources in Japan and overseas and of Toyo Rika’s management resources in Japan and China. NLM and Toyo Rika will reinforce their partnership through strategic initiatives, including integration of their resources.
We offer solutions to meet increasingly diverse and specialized customer needs by creating customer value from a new perspective encompassing everything from materials to fabrication, based on the NLM Group’s expertise in materials and Toyo Rika’s non-ferrous metal fabrication technology.
2. Profile of Toyo Rikagaku Kenkyusho Co., Ltd.
| (1) | Company name: | Toyo Rikagaku Kenkyusho Co., Ltd. |
| (2) | Address: | 1961 Somagi, Tsubame City, Niigata Prefecture 959-1284, Japan |
| (3) | Representative: | Takeshi Shimakura, Chief Executive Officer |
| (4) | Establishment: | April 5, 1950 |
| (5) | Capital: | 855.55 million yen |
| (6) | Number of employees: | 283 (as of December 2014) |
| (7) | Net sales: | 6.4 billion yen (forecast for fiscal 2014) |
| (8) | Lines of business: | Manufacturing of metal products (IT device enclosures, optical equipment enclosures, automobile equipment, various containers, sheet metal building materials, etc.) Metal surface treatment (stainless steel, aluminum, titanium, etc.) |
3. Outline of acquisition of shares
| (1) | Number of shares acquired: | 596,682 shares |
| (2) | Date of acquisition: | January 20, 2015 |
| (3) | Ownership after share acquisition: | 51.6% |
| (4) | Number of shares after share acquisition: | 1,099,123 shares |
4. Other information
Toyo Rika has a subsidiary in China and its profile is as described below:
| (1) | Company name: | Toyo Precision Appliance (Kunshan) Co., Ltd. |
| (2) | Registered address: | Kunshan Economic & Technical Development Zone, Jiangsu Province, People’s Republic of China |
| (3) | Representative: | Ichiro Kobayashi |
| (4) | Establishment: | March 2004 |
| (5) | Capital: | 28 million US dollars |
| (6) | Shareholders: | Toyo Rikagaku Kenkyusho Co., Ltd. 70%, Coxon Precise International Ltd. 30% |
| (7) | Number of employees: | 2,140 (as of December 2014) |
| (8) | Net sales: | 8.7 billion yen (forecast for fiscal 2014) |
| (9) | Lines of business: | Manufacturing of IT device enclosures etc. |
For inquiries about this news release, please contact:
Tel: +81-3-5461-9333
Public Relations Office
Nippon Light Metal Co., Ltd.