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Acquisition creates safety device market leader

Edited by the Engineeringtalk editorial team Sep 14, 2006

Omron Corp has completed its previously announced acquisition of 100% of the shares of Scientific Technologies for a purchase price of US $94 million.

Omron Corp has completed its previously announced acquisition of 100% of the shares of Scientific Technologies for a purchase price of US $94 million.

The terms of the transaction were approved by the US Securities and Exchange Commission (SEC) on 24th August 2006, and at an extraordinary meeting of Scientific Technologies shareholders held on 12th September 2006.

As a result this acquisition, Omron becomes the number-one player in the Y110 billion (approximately US $940 million) global safety device market, which is predicted to grow 15% per year backed by a rising trend for corporate social responsibility (CSR) that stresses not only improved productivity but also workplace safety.

In line with the automation and globalisation of production processes, manufacturers have increased their focus on safety, quality and the environment.

Omron, as a primary supplier to industrial workplaces, has responded accordingly.

In April of last year, it established a dedicated safety devices division.

It enhanced its safety devices lineup of components and networks, and boosted its system solutions capabilities and safety-design consulting services.

Now, having completed this latest acquisition, it plans on growing its safety business aggressively, aiming to achieve a three-fold increase in sales from Y10 billion (US $85 million) in fiscal year 2005 to Y30 billion (US $255 million) by fiscal year 2008.

Scientific Technologies' products include a wide range of components for safety light curtains, laser scanners, and other safety devices and services, and the company has developed strengths across multiple sectors including the automotive, semiconductor, electronic devices, food processing, chemicals and cosmetics industries.

"In addition to enhancing our product line-up, we plan to accelerate new product development by integrating STI's patented optical applications, expertise in device ruggedisation, and value-added services with Omron's own innovative automation, sensing and control technologies", said Yoshinori Matsueda, the newly appointed CEO of OSTI.