Hitachi, Ltd. entered into a definitive agreement to acquire JR Automation Technologies, LLC from funds managed by Crestview Partners, L.P. and others for $1.4 billion.
April 22, 2019
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Hitachi, Ltd. (TSE:6501) entered into a definitive agreement to acquire JR Automation Technologies, LLC from funds managed by Crestview Partners, L.P. and others for $1.4 billion on April 23, 2019. Hitachi, Ltd. will acquire JR Automation Technologies on a cash-free debt-free basis. The purchase price is subject to a possible post-closing adjustment. With the acquisition of JR Automation, Hitachi will acquire JR Automation's customer base in the OT domain, along with advanced robotic SI technologies, know-how, and resources. Additionally, the acquisition of JR Automation will allow Hitachi to further expand its Lumada Solution business, globally. In 2018, JR Automation Technologies had revenues of approximately $603 million. As part of the transaction, Mike DuBose of JR Automation is the outgoing Chairman. The transaction is subject to regulatory and other customary closing conditions and expected to close by the end of 2019. As per the announcement on June 3, 2019, the Federal Trade Commission granted early termination notice for the acquisition.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. acted as financial advisor and Albert, Amanda, Ancenys, Laurie-Anne, Bell, Maria Christopher, Betts, Tom , Beyer, Brittany, Brooks, Ben , Chiang, Kuang , Choplin, Pauline, Coogan, Kyle , Delassaussé, Marianne, Eisenstein, Cara, Ekrami, Susan, Golubock, David, Harris, Rebecca, Hicheri, Roxane , Hwang, Eun Joo, Jebb, Brian, Jiang, Cherie, Johnston, Elaine, Karolia, Shaheen, Lamblin, Luc, Lewis, Dave, Li, Liam, Livneh, Keren, Macrae, Tanya, Mansfield, Philip, Masterman, Thomas, Montano Young, Natalie, Nakashima, Taro, O'Leary, Andrzej, Patel, Puja, Pauley, Kendall, Piazzon, Ugo, Pultman, Jacob, Rezendes, Maura, Rivalland,, Jean-Claude, Rivlin, Ken, Shube, Eric, Sng, Jeremy, Sorensen, Mark , Wall, Nick , Wattrelos, Camille, Wong, Wei Ling, Worms, Paul and Young, Pierce of Allen & Overy acted as legal advisor for Hitachi, Ltd. Goldman Sachs & Co. LLC and BofA Merrill Lynch acted as financial advisors for JR Automation and the selling shareholders. Alex Fine, Michael Collins, Benjamin Rippeon, Meghan Hungate, Michael Murphy, Judith Lee and Jean-Philippe Robe of Gibson, Sebastien Evrard, Dunn & Crutcher LLP acted as legal advisor to JR Automation and the selling shareholders.
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).
Hitachi, Ltd. entered into a definitive agreement to acquire JR Automation Technologies, LLC from funds managed by Crestview Partners, L.P. and others for $1.4 billion.
HITACHI, LTD. 
