DMG MORI Acquires Lathe Division of AMADA
At the Board of Directors’ meeting held on 27th October, 2014, DMG MORI SEIKI CO., LTD (“DMG MORI”) has decided to take over the lathe division of AMADA MACHINE TOOLS CO., LTD., a subsidiary wholly owned by AMADA CO., LTD. (“AMADA”) as of April 1, 2015. The takeover price is to be determined through further negotiations and will be announced as soon as it has been determined.
The lathe division of AMADA started when WASINO KOGYO CO., LTD. (subsequently changed to WASINO MACHINERY CO., LTD. in 1960) started manufacturing and selling lathes in 1937. Then as a result of the business cooperation, it became a member of the AMADA group in 1978. Currently it is a part of the lathe division of AMADA MACHINE TOOLS CO., LTD. AMADA has developed numerous new products that are highly valued by customers as high-precision compact lathes. DMG MORI believes that it could further increase customer satisfaction with DMG MORI’s strong sales system and prompt services around the world, and would contribute to enhancing corporate value.
DMG MORI established DMG MORI WASINO, LTD., a company specializing in compact lathes, to succeed the Wasino brand. DMG MORI intends to manufacture compact lathes at the Nara Campus using existing facilities and by improving efficiency at the same time. DMG MORI intends to hire over 100 superlative employees for the development, manufacture, sales, engineering, and service of compact lathes to further satisfy customer requirements.
Scope of Takeover
DMG MORI intends to take over managerial resources such as business rights, intellectual property, products and spare parts related to the lathe division of AMADA MACHINE TOOLS CO., LTD. Furthermore, DMG MORI intends to newly hire employees from the current employees of AMADA MACHINE TOOLS CO., LTD. to the extent necessary to continue the business of the lathe division. As soon as the scope of the takeover (management performance, items and amount of assets and liabilities as well as the accounting impact of the division) is determined, the details will be announced immediately.
