With Acquisition of JR Automation, Hitachi Enters North America Robotic SI Business

By Shin Kai

Acquisition or Partnership

Hitachi, Ltd. announced that it entered into a definitive contract for the acquisition of the robotic SI business operated by an American company, JR Automation Technologies, LLC, headquartered in Holland, Michigan, from funds managed by Crestview Partners.  Subject to the terms and conditions of the contract, Hitachi will acquire JR Automation, which builds production lines and logistics systems using industrial robots, at the acquisition price of US $1,425 million (approx. 158.2 billion yen) on a cash-free debt-free basis.  The acquisition is expected to be executed by the end of 2019, subject to the satisfaction of certain regulatory and other customary closing conditions.  As a result of this acquisition, Hitachi will enter the robotic SI business in North America.

Since its establishment in 1980, JR Automation has been involved in the robotic SI business, building production lines that incorporate industrial robots, predominantly in North America but increasingly around the world.  It is capable of designing, building, and adjusting not only specific lines but entire production lines and demonstrates unique strengths and expertise in robot-based assembly and welding processes.  As such, JR Automation has a robust customer base across a wide range of industries, including the automotive, aerospace, e-commerce, and medical device industries.  With approximately 2,000 employees, the company registered revenues of approximately US$603 million (approx. 67 billion yen) on a consolidated basis in 2018.

Hitachi, in the Industry Sector, will continue to accelerate the global rollout of the robotic SI business, together with the acquisition of KEC Corporation, a Japanese robotic system integrator, for which an acquisition contract was completed by Hitachi Industrial Equipment Systems Co., Ltd. in March 2019.  With the acquisition of JR Automation, Hitachi will acquire its 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.  Lumada is Hitachi’s advanced digital solutions, services, and technologies business, which helps customers and management turn their workplace data into insights to drive digital innovation.

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