Kyocera Corporation has concluded a basic agreement as of September 29 to acquire 80 percent of shares of a company to be established from the company split of Ryobi Limited’s power tool business. Details of the company to be established have not yet been determined, but the acquisition is expected to be completed in January 2018. Through the acquisition, Kyocera aims to promote diversification and further expansion of its cutting tool business.
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 entering 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 tools for the construction industry. In particular, Kyocera has recently strengthened its power tool business in the U.S. and European markets through targeted acquisitions such as the acquisition of the Unimerco Group in Europe (now KYOCERA UNIMERCO A/S) in 2011 and the acquisition of SENCO Holdings, Inc. in August 2017 (now KYOCERA SENCO Industrial Tools, Inc.).
By acquiring the power tool business from Ryobi, which has a strong market position in Japan and Asia — 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.