|[latest news list]||August 26, 2009|
Daikin to Acquire Japan's Leading Air Filter Company Nippon Muki
Becoming Global No. 1 Commercial Supplier in the Air Filter Business
Daikin Industries, Ltd. has reached a definitive agreement with Nippon Sheet Glass Co., Ltd. (Head Office: Tokyo Minato-ku, hereafter referred to as NSG) to acquire all outstanding shares of NSG's wholly owned subsidiary Nippon Muki Co., Ltd. (Head Office: Tokyo Chuo-ku, hereafter referred to as Nippon Muki) at a price of 5 billion yen. The closing of the acquisition is planned for October of this year.
Nippon Muki is the leading developer and manufacturer of air filters in the Japan market (sales: 8.8 billion yen) and represents Daikin's ongoing commitment to the air filtration business. In 2007, American Air Filter International (hereafter referred to as AAF), which has the second largest share of the targeted global air filter market, was acquired by Daikin as part of the OYL Group. With the acquisition of Nippon Muki, Daikin will combine the respective strengths of both companies in product development, manufacturing, and sales networks to gain the No. 1 position in the global air filter business.
[Gaining the Global No. 1 Position in the Air Filter Business]
Having established over 20 production bases in the regions of North America, Europe, China, and Southeast Asia and with an expansive sales network, AAF has established a brand name in the air filter business that is known around the world. Through the continuing support of product development, manufacturing, sales, and services across a wide range of markets, AAF has built a business foundation that leverages regional positions to have successfully gained the No. 2 position in Global market share.
Nippon Muki, with their industry leading production capabilities, evaluation and testing technology, an engineering team that supports the launch of market leading innovative new products, combined with a solid sales network, has achieved the top share of the air filter market in Japan.
Both AAF, and the Daikin Group are providing air filter products that span a wide range of applications, and industries. With the acquisition of Nippon Muki, Daikin will grow the No. 1 position in the global air filter business through the expansion of both companies, including accelerated development and launch of products with high performance and functionality.
As energy savings, air quality and the environmental concerns increase, further market growth can be expected as a result of greater need for improved performance and functionality in both air filters and equipment. Growth will also come from the growing clean air needs of high tech industries and increasingly stricter environmental regulations being issued by governments around the world.
[Filter Business Expansion to Augment the Daikin Group]
This latest acquisition mutually complements the relative strengths of the Daikin Group and Nippon Muki to build upon on their respective advantages to promote the air filter business as "a new pillar" of the Daikin Group.
Specifically, integrating the development teams of AAF and Nippon Muki while coordinating with Daikin's air conditioning and chemicals development teams will enhance the collective capability to increase innovation and strengthen and develop the filter business. This will enhance the development of filter products with high performance and functionality for applications related to the healthcare, food, and electronics and power generation industries. In addition, Daikin intends to utilize the sales networks of AAF and Nippon Muki along with those of its air conditioning and chemical businesses to expand capabilities both in Japan and worldwide.
AAF continues to position itself to gain business opportunities from the growing demands associated with; increased energy costs and demand as the world economy recovers; growing awareness of clean air in buildings, manufacturing processes and in the environment; the increased consciousness of a "green" society; and the renewed investments in infrastructure for emerging markets.
Currently the combined sales in the filter business of the Daikin Group and Nippon Muki will exceed 70 billion yen; however, the collective capability of the Group, including AAF, Nippon Muki, and the Daikin air conditioning and chemicals businesses, will be aimed at further expanding the global development of the air filter business.
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