Dec 16, 2010

Car Wash Equipment Business Acquisition

December 16, 2010

Daifuku Co., Ltd. is pleased to announce that Daifuku and YASUI Corporation ("YASUI") have reached an agreement for the transfer of YASUI's car wash equipment business, including manufacturing, sales and maintenance operations, to Daifuku Plusmore Co., Ltd. (President: Seiki Kakinuma (serving concurrently as senior managing director Daifuku), "Daifuku Plusmore"), a wholly owned subsidiary of Daifuku that manufactures and sells products including car washes and bowling systems.

The transfer reflects both Daifuku's wish to strengthen its car wash equipment business and YASUI's intention to streamline its management by refining its business focus. The Japanese market for car washes has been downsizing significantly, to the result developments in the filling station industry, a major customer base, including intensifying competition attributable to deregulation and declining fuel oil demand in reaction to the rise of next-generation vehicles. The number of filling stations fell from a peak of 60,000 in 1995 to slightly fewer than 40,000 today. YASUI has many customers to which it is able to supply car washes exclusively. The company has sold approximately 4,000 car washes in the period since September 2003. The transfer will give Daifuku a stake in a greater number of car washes, helping it to improve earnings by lowering manufacturing and sales costs through mass production, expanding service revenues, and making other changes.

The transfer will enable Daifuku to manufacture and sell all car washes under the "Daifuku" brand name. In addition, about 50 employees from YASUI's car wash operations will move to Daifuku Plusmore.

Daifuku launched its car wash equipment business in 1977. The Company has led the industry with its product development capabilities, which have enabled it to be first to market in recent years with models such as quiet car washes that achieve significant noise reduction, as well as water-saving types that consumer less than half the water used by conventional models. YASUI has meanwhile been involved in car wash operations since 1970, earning a reputation in Japan and overseas in the field of car maintenance equipment. Both Daifuku and YASUI have built solid positions in the car wash industry.

The Daifuku Group expects the transfer to increase consolidated income by about 500 million yen in the fiscal year ending March 2011 and by about 3,000 million yen in the fiscal year ending March 2012.

Profile of YASUI Corporation
Head office: Fujinomiya City, Shizuoka, Japan
Representative: Masakazu Yamagishi, president
Established: 1943
Employees: 230 (as of November 30, 2009)
Net sales: 6,650 million yen (result for the period ended November 2009)
Business items: car washes, garage jacks, and other equipment