Parent Companies of Echo and Shindaiwa Announce Joint Holding Company

Discussion in 'General Industry Discussions' started by Solid Shaft, Apr 14, 2008.

  1. Solid Shaft

    Solid Shaft LawnSite Member
    from NC
    Posts: 2

    Parent Companies of Echo and Shindaiwa Announce Joint Holding Company

    Chicago, IL and Portland, OR (April 14, 2008) - Kioritz Corporation, Tokyo, Japan, parent company
    of ECHO Incorporated, Lake Zurich, IL and Shindaiwa Corporation, Hiroshima, Japan, parent company
    of Shindaiwa Incorporated, Tualatin, OR have announced plans to form a joint holding company which
    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. We are certain
    the formation of this holding company will be good for Shindaiwa employees and business partners,”
    said Mr. Y. Asamoto, President and CEO of Shindaiwa Corporation.

    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 commence 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.
    The joint holding company will better position both brands to successfully compete in a dynamic
    global marketplace,” explains Mr. Chuck Kitazume, Kioritz Corporation President and CEO.

    The joint holding company is subject to approval of shareholders at meetings to be held on June
    27, 2008 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 December 1, 2008.

    Kioritz Corporation and ECHO Incorporated are global manufacturers and marketers of forestry and
    agricultural machinery, as well as outdoor power equipment. Shindaiwa Corporation and Shindaiwa
    Incorporated are global manufacturers and marketers of welding machines and generators,
    agricultural and forestry machinery, and outdoor power equipment.






    :confused:
     
  2. ffemt1271

    ffemt1271 LawnSite Bronze Member
    Posts: 1,285

    well i guess shindaiwa will go down the drain
     
  3. Lynden-Jeff

    Lynden-Jeff LawnSite Bronze Member
    Posts: 1,405

    Echo>Shindawia to begin with. Echo was selling shindy technology to bring them up to emmision standards.
     
  4. Solid Shaft

    Solid Shaft LawnSite Member
    from NC
    Posts: 2

    Mergers occur on weakness not strength of the companies, ( Sirius/ XM... Northwest/Delta.) I wonder who is the weaker of the two?.
    Edit/Delete Message
     
  5. Tider6972

    Tider6972 LawnSite Senior Member
    from Alabama
    Posts: 649

    Nope, not always; false premise.
     
  6. InSiDeR

    InSiDeR LawnSite Member
    Posts: 9

    This is not true. Shindaiwa meets current emission standards with their own engine technology, both on 2-cycle and their hybrid 4-cycle products known as C4 technology. Neither of which was purchased from Echo.

    As far as your claim that Echo>Shindaiwa, do some research, Shindaiwa produces more power per cc than Echo, period. Ever wonder why Echo never publishes power output? The only place you can find this information on Echo is through the EPA website. It's one of the emission testing requirements.
     
  7. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,326

    And what is the volume of Echo versus Shin in small hand held lawn tools?
     
  8. InSiDeR

    InSiDeR LawnSite Member
    Posts: 9

    Echo does much more volume in handheld equipment (approx 3 times) due to price points and the fact that much of their volume is through the big box store (Echo's big box sales alone are likely more volume than what Shin does in the US and Canada). Shindaiwa does'nt produce products for price point or box stores. Their focus is on commercial users and servicing dealers. Those dealers that service and support the landscape industry.
     
  9. InSiDeR

    InSiDeR LawnSite Member
    Posts: 9

    Here's a well written blog that I stumbled across from "Anonymous distributor". Evidently he/she is a distributor of power equipment that sells to retail dealers. Personally I think he/she is spot on.

    InSiDeR

    Tuesday, April 15, 2008

    Parent Companies of Echo and Shindaiwa Form Holding Company

    After the May 21, 2007 announcement that Kioritz Corp. (Echo’s parent) and Shindaiwa were forming an alliance to seek operational and product synergies, I assumed that it would not be long before a more formal union was announced. Eleven months later, on April 14, 2008, Kioritz and Shindaiwa announced plans “to form a joint holding company which will own and operated the two companies (Echo and Shindaiwa.”)

    The announcement went on to say that “Selective trading of existing products has already started and joint development and advanced engineering will commence soon. The companies have also begun cooperation on various operational matters including purchasing, production, computer systems, and logistics.”

    “Existing shares of Kioritz and Shindaiwa common stock will be exchanged for shares of the newly formed holding company on or about December 1, 2008.”

    The entire press release is here:
    http://www.echo-usa.com/CompInfo.asp?Page=News&Type=Release#Alliance3 or here http://www.shindaiwa.com/nam/en/_docs/press/PR_Echo_Shindaiwa_Announcement.pdf

    So if it sounds like a merger, and looks like a merger, then I’m going to call it a merger of two strong companies with two strong brand names. And because of this merger, the support, the products and the strength of the brand names will only become stronger.

    I hope we’ll be seeing more “strategic alliances,” “mergers” and “joint ventures” in the future that are crafted as carefully as this one appears to have been. If it strengthens the industry, it will receive my vote of support.
    Posted by Anonymous Distributor at 1:55 PM

    If you would like to read more blogs just google "Anonymous distributor".
     
  10. Tider6972

    Tider6972 LawnSite Senior Member
    from Alabama
    Posts: 649

    quote: "
    So if it sounds like a merger, and looks like a merger, then I’m going to call it a merger of two strong companies with two strong brand names. And because of this merger, the support, the products and the strength of the brand names will only become stronger.

    I hope we’ll be seeing more “strategic alliances,” “mergers” and “joint ventures” in the future that are crafted as carefully as this one appears to have been. If it strengthens the industry, it will receive my vote of support.
    Posted by Anonymous Distributor at 1:55 PM"......

    Agree, this is a case of two strong companies merging to the benefit of both as well as theindustry, IMO.
     

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