Jun 05, 2012

Daifuku to Acquire South Korea's Top Car Wash Manufacturer

June 4, 2012

Daifuku Co., Ltd. ("Daifuku") today announced that it has reached a tentative agreement with Ms. Yena Kang, president and CEO and the 100% shareholder of Hallim Machinery Co., Ltd. ("Hallim"), the leading manufacturer of car wash machines in South Korea, to purchase all shares of the company subject to approval by the Korea Fair Trade Commission. Leading Securities Co., Ltd. (a group company of South Korea-based Leading Investment & Securities Co., Ltd., located at 1-8-8 Shinkawa, Chuo-ku, Tokyo, Japan) acted as financial adviser to the purchaser in the transaction.

Hallim is the top car wash equipment manufacturer in South Korea and has more than a 40% market share. It was an early pioneer in the manufacturing and sales of car wash machines and opened up the market. Having developed and released products that comply with U.S. and European safety standards, it has a proven delivery record in the Western and Asian markets.

With the acquisition, Daifuku plans to take over all Hallim's employees and customers. Daifuku will swiftly integrate Hallim's operations with the car wash division of its affiliate, Daifuku Korea Co., Ltd. The Daifuku Group will continue to develop, manufacture, and sell products that meet market needs in South Korea. In addition, making an effective use of the Group's global locations, Daifuku will target markets in China, ASEAN countries where car ownership rate has increased significantly due to increased motorization, and the West.

Corporate Profiles

Hallim Machinery Co., Ltd.
Headquarters: Siheung, Gyeonggi-do, South Korea
Representative: Yena Kang
(After the integration, president Seiki Kakinuma of Daifuku Plusmore Co., Ltd., a Daifuku affiliate, to assume the position concurrently)
Established: 1988
Employees: Approximately 100 (as of December 2011)
Net sales:
24 billion won (for the fiscal year ended December 31, 2011)
= 1.8 billion yen (approximately)

Daifuku Co., Ltd.
Headquarters: 3-2-11 Mitejima, Nishiyodogawa-ku, Osaka 555-0012 Japan
Representative: Masaki Hojo
Established: 1937
Employees: 5,617 (as of March 31, 2012)
Consolidated net sales: 198,052 million yen (for the fiscal year ended March 31, 2012)

Daifuku Korea Co., Ltd.
Headquarters: Incheon, South Korea
Representative: Tetsushi Imazato
Established: 1997
Employees: 138 (as of December 31, 2011)
Net sales:
51.2 billion won (for the fiscal year ended December 31, 2011)
= 3.8 billion yen (approximately)