Post on 07-Feb-2018
transcript
© Hitachi, Ltd. 2017. All rights reserved.
Hitachi Enters into Agreement to Acquire
Air Compressor Manufacturer Sullair
Making a Full-scale Entry into the North America Compressor Segment
Masakazu Aoki Executive Vice President and Executive Officer
Hitachi, Ltd.
1. Hitachi’s Industrial Business
1
Power/EnergyField
Industry &Distribution/
WaterField
UrbanField
Financial/Government
& Public/Healthcare
Field
Realize customer’s growth
・Industrial Products BU・Hitachi Industrial Equipment Systems
Add value by products
Front
ProductsIndustrial Products
Business
Expand industrial business by collaboration of Front and Product
Service & Platform BUPlatform
© Hitachi, Ltd. 2017. All rights reserved.
2. Hitachi’s Industrial Products
OTControl・Operate
Provide innovation to customers and society by OT × IT × Product & System
Product & SystemHardware・Materials・EPC・SI
ITVisualize・Analyze・Predict
OT: Operational Technology 2
Motor
Transformer
InverterUPS・PCS
Marking & Coding
CentrifugalCompressor
Pump
Industrial Products
M2M Device
60.00Hz
60.00Hz
60.00Hz
OUTPUT FQ
OUTPUT FQ
OUTPUT FQ
◀ ▶
Local Command source Remote
60.00Hz 〇10:08
◀
Controller
Air Compressor
© Hitachi, Ltd. 2017. All rights reserved. 3
Stationary
PortableMainly used Construction・Mining・O&G industries
Air compressor is a utility that is essential to the industry regarding power sources for pneumatic drive machinery
3. Overview of Air Compressor
1. Oil flooded: uses oil to cool the inside of the compressor[Used in various industries]
2. Oil free: high-tech product that does not use cooling oil [Essential specification in industries requiring a level of air cleanliness (e.g., Food, Beverage, Pharmaceuticals)]
Used in various manufacturing and inspection devices
in the manufacturing line
Electrical component packaging
Auto assembly
Machine tools
Bottling filling
machines
Chemical plant
© Hitachi, Ltd. 2017. All rights reserved.
4. Purpose and Target
4
Target of Acquisition
Purpose of Acquisition
Full scale entry into highly desirable North American compressor segment
Acquiring Sullair’s customer and distributor networks and expand product line-up
Global expansion of industrial digital solution business utilizing above networks
Affiliates of Carlyle
Affiliates of BC Partners
Accudyne Industries(Holding Co.)
Sullair / Air Compressor Business
Milton Roy / Precision Pumps
Sundyne / Process Pumps and Gas Compressors
Approx.49%
Scope of Target
Total Acquisition Price:135.7B Yen (1.245B $)※
Acquire Accudyne’s subsidiaries and certain related assets that is related to
air compressor business under “Sullair” brand
Approx.49%
※Subject to customary adjustment
© Hitachi, Ltd. 2017. All rights reserved.
5. Outline of Sullair
5
Item Details
Establishment 1965 Headquarters Chicago/US
Representative President John (Jack) Carlson No. of Employees Approx. 890
Business activities Manufacture/sale/service of stationary and portable air compressors
Manufacturing site Michigan city, US / Shenzhen, Suzhou, China
No. of distributors Approx. 200 companies in North America, approx. 50 companies in China
Revenue FY2016 (Actual) 43.2 billion yen FY2017 (Forecast) 45.8 billion yen
Adjusted EBITDA FY2016 (Actual) 7.0 billion yen FY2017 (Forecast) 8.9 billion yen
General Industry
Energy & Mining
Construction
Infrastructure
Chemical
Other
Sales by Region Sales by ProductsSales by Customer
North AmericaChina
Australia
Central South
America
EMEA Other
After Service
Stationary
Portable
OEM
Others
Need to decide FX rate (currently 109yen)
© Hitachi, Ltd. 2017. All rights reserved.
6. Complementary Relationship with Sullair
6
Capture various customers by utilizing both Sullair’s and Hitachi’s strengths
Sullair’s strengths Hitachi’s strengths
Region North America, China Japan, Asia
Industry Construction, Mining, O&G Electronics, Auto, Food, Life Science
ProductLarge-scale stationary and potable air
compressor
Oil-free air compressor,
and Inverter air compressor
■ Region/Industry/Product
Product SullairSales
Ratio
(FY15)
Stationary
Compressor 36%
Portable
Compressor20%
After Market
& Other44%
Product HitachiSales
Ratio
(FY15)
Stationary
Compressor 59%
Portable
Compressor - 0%
After Market
& Other41%
Sullair Product Hitachi Product
© Hitachi, Ltd. 2017. All rights reserved.
7. Sullair’s Strong Sales Network in North America
7
Acquire Sullair’s Distribution Network and Customer Base
Distribution Network of Sullair in North America
Sullair・Distributor:Approx. 200・End User: Approx. 4,000
Hitachi・Distributor:Approx. 50・End User: Approx. 200
© Hitachi, Ltd. 2017. All rights reserved.
8. Utilization of Sullair’s Customer Base
8
Air compressors
Life
ScienceFood &
Beverage
Electric
ComponentAuto
Constructi
on/MiningO&G Retail
Providing Hitachi’s connected products for Digital Industrial Solutions
Marking & Coding Products
Enhance Hitachi’s products lineup, Distributing products
Promoting Digital Solutions from downstream products
Digital Industrial Solutions
IoT Platform 「Lumada」
Sullair’s customer in North America:4,000
© Hitachi, Ltd. 2017. All rights reserved.
Continuous ink jet printer
CO2 Laser Marker
Packaging Film
PET
【Samples】
CanEgg
Vision System
9. Promotion for Marking & Coding Equipment
9
Provide Marking & Coding equipment to Sullair’s customers, especially global key accounts in Food & Beverage industry etc.
Expand Solution Business : Coding, Traceability, etc.
© Hitachi, Ltd. 2017. All rights reserved.
Real Time Operation Monitoring via
・Flood Pressure Sensor
・Temperature Sensor
・Operation Time
・Predictive diagnosis: Planning Component replacement
・Field Management: Sending Service Staff
Optimization After Service
Cloud Database
■Picture Sensing and Movement Analytics
10
10. Expanding Digital Solutions Business Globally
Propose Digital Solutions to Sullair’s customer base
■Solution Example
Improve Product Quality Assurance Rate
SenseThinkAct
Picture, etc.Movement・Operational
Analytics
ErrorNotification
■ Remote Monitoring with Big Data analysis
Omnidirectionalcamera
PTZcamera(Internal)
Fixed speed/ High speed camera
Distance camera
Manager
PartsSupplier
Worker
© Hitachi, Ltd. 2017. All rights reserved. 11
11. Conclusion
・Acquire Sullair’s Distribution Network and Customer Base
・Accelerate North American Business
・Enlarge Air Compressor Business
(Sales target: beyond JPY100Billion)
・Expand to Marking & Coding Business
・Provide Digital Industrial Solution Business Globally
Expansion
of Hitachi’s
industrial
business