Kioritz Corp., Tokyo, parent company of Echo Inc., Lake Zurich, Ill., and Shindaiwa Corp., Hiroshima, Japan, parent company of Shindaiwa Inc., Tualatin, Ore., have announced plans to form a joint holding company that will own and operate the two companies.
The two companies entered into a business and shareholder alliance on May 21, 2007, the purpose of which was to investigate mutual means of addressing today’s increasingly competitive global environment through product and operational synergies.
“After working closely together for nearly one year, we were pleased to uncover more opportunities than initially expected,” said Y. Asamoto, president and CEO of Shindaiwa Corp. “We are certain the formation of this holding company will be good for Shindaiwa employees and business partners.”
To better understand and act upon possible operational improvements, various joint working committees were formed this past year to exchange ideas and consider ways of cooperation. Selective trading of existing products has already started and joint development and advanced engineering will begin soon. The companies have also begun cooperation on various operational matters including purchasing, production, computer systems and logistics.
“Through our joint efforts during the last year we have identified many ways of improving our combined performance,” said Chuck Kitazume, Kioritz Corp. president and CEO. “The joint holding company will better position both brands to successfully compete in a dynamic global marketplace.”
The joint holding company is subject to approval of shareholders at meetings to be held on June 27, and compliance with all governmental and Tokyo Stock Exchange regulations and requirements. Existing shares of Kioritz and Shindaiwa common stock will be exchanged for shares of the newly formed holding company on or about Dec. 1.
Kioritz Corp. and Echo Inc. are global manufacturers and marketers of forestry and agricultural machinery, as well as outdoor power equipment. Shindaiwa Corp. and Shindaiwa Inc. are global manufacturers and marketers of welding machines and generators, agricultural and forestry machinery, and outdoor power equipment.
