Daifuku Co Ltd of Osaka, Japan is acquiring Jervis B Webb of Michigan, US for an undisclosed amount.
The two materials handling equipment manufacturers have a working relationship spanning 40 years. Jervis Webb, established in 1919, produced a chain conveyor for moving automobile bodies, first implemented by Henry Ford in the early 1920s.
Daifuku entered into a technology partnership with Webb in 1957. It manufactured and sold the Webb chain conveyor technology, contributing to the development of Japan's automobile industry. The partnership ended in 1997.
A Jervis Webb spokesman says the companies came together as a result of their historical relationship.
"The company was never offered for sale.
"Most Webb family shareholders are no longer involved in the business. Many were seeking an opportunity to sell their shares and to diversify their portfolio of investments.
"The offer from Daifuku allows for continuity of the Webb legacy with a strong financial, technical and strategic partner while accomplishing the shareholders' goal of realising fair value for their shares."
Daifuku says in a statement it will position Webb as a "new core business" in the Daifuku group. Daifuku executive vice president Masaki Hojo will be Webb's chairman and co-CEO, sharing the position with Susan M Webb, granddaughter of the company founder and current company president and CEO.
Daifuku says overseas business expansion is one of the goals in its three-year business plan that commenced in April. The acquisition of a leading US materials handling company is expected to fast track the Japanese manufacturer's overseas expansion plans.
There is little overlap in the two companies' customers and product offering, Daifuku says. Their past long-term technology partnership is expected to smooth their new relationship, with Daifuku capitalising on Webb's US brand recognition and human capital in North America and its global production and sales networks.
Jervis B Webb's spokesman says there are no plans to eliminate jobs as a result of the acquisition. Daifuku "intends to look for opportunities to grow its overall business including the Webb business" through the acquisition.
Daifuku of Osaka, Tokyo, was established in 1937 and has about 4,700 employees. Its annual sales for fiscal year ended March 2007 was JPY 232.7 billion (USD2.14 billion). It manufactures conveying, storage, sorting, and picking systems for automotive factories, the manufacturing industry and the distribution industry.
Jervis B Webb of Michigan, USA employs 940 people and its annual sales for fiscal year ended December 2006 was USD216 million. Its products include airport baggage handling systems, automatic guided vehicles, automated storage and retrieval systems.
The acquisition will be finalised after obtaining US government authorisation and approval.