Omron enters safety device market with STI acquisition

Tokyo, Japan—Omron Corp. will acquire Scientific Technologies Inc. for $94 million plus net cash and working capital adjustments under a definitive agreement between the two companies.

05/02/2006


Tokyo, JapanOmron Corp . will acquire Scientific Technologies Inc . for $94 million plus net cash and working capital adjustments under a definitive agreement between the two companies. The transaction, approved by the boards of directors of both companies, does not include STI's Automation Products Group (APG).

The acquisition is said to give Omron's Industrial Automation Business (IAB) a key position in the North American safety devices market and reportedly will make it a major global player in a 110-billion-yen (approximately $940 million) market that is growing 15% annually. A primary supplier to industrial workplaces, IAB established a dedicated safety devices division last year, enhancing its lineup of safety components and networks and boosting its system solutions capabilities and safety-design consulting services. With the acquisition, the company reportedly will grow its safety business from 10 billion yen ($85 million) in fiscal year 2005 to 30 billion yen ($255 million) by fiscal year 2008.

IAB expects to enhance its lineup of products with STI's suite of safety light curtains, laser scanners, and other safety devices. It also anticipates accelerating new product development by integrating STI's optical applications and value-added services with Omron's automation, sensing, and control technologies. The effort will make use of Omron's sales and distribution network that covers more than 60 countries and multiple industries, including automotive, semiconductor, electronic devices, chemicals, cosmetics, and food processing.

"Omron IAB and STI will create a global safety equipment supplier of safety, sensing, and control technologies that satisfies customers' demands for not just labor productivity but also product quality, employee safety, and environmental friendliness," said Fumio Tateisi, IAB president and Omron executive vice president. "By acquiring STI, we will be able to offer a wider range of cutting-edge safety products and consultancy services to our customers," he went on.

The transaction is subject to closing conditions, including regulatory approval and approval by the companies' shareholders.

Related article from Control Engineering : " Assess Risk ."

—Control Engineering Daily News Desk
Jeanine Katzel, senior editor, jkatzel@reedbusiness.com





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
Each year, a panel of Control Engineering editors and industry expert judges select the System Integrator of the Year Award winners.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Learn how to create value with re-use; gain productivity with lean automation and connectivity, and optimize panel design and construction.
Go deep: Automation tackles offshore oil challenges; Ethernet advice; Wireless robotics; Product exclusives; Digital edition exclusives
Lost in the gray scale? How to get effective HMIs; Best practices: Integrate old and new wireless systems; Smart software, networks; Service provider certifications
Fixing PID: Part 2: Tweaking controller strategy; Machine safety networks; Salary survey and career advice; Smart I/O architecture; Product exclusives
The Ask Control Engineering blog covers all aspects of automation, including motors, drives, sensors, motion control, machine control, and embedded systems.
Look at the basics of industrial wireless technologies, wireless concepts, wireless standards, and wireless best practices with Daniel E. Capano of Diversified Technical Services Inc.
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
This is a blog from the trenches – written by engineers who are implementing and upgrading control systems every day across every industry.
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Control Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.