March 18, 2009
SEKISUI CHEMICAL CO., LTD.
SEKISUI MEDICAL CO., LTD.
Diagnostic Reagents Business Formally Expands Overseas
By Acquisition of U.S. Company Sekisui Chemical Co., Ltd. (President: Naofumi Negishi, hereinafter Sekisui Chemical) will acquire 100% of the shares of American Diagnostica Inc. (President: Richard Hart, hereinafter ADI) of the state of Connecticut in the U.S. who is in the Diagnostic Reagents Business.
Sekisui Chemical has already expanded its medical business with Sekisui Medical Co., Ltd. (hereinafter Sekisui Medical), a subsidiary company, announced that the sales of a product which is No. 1 in the domestic market share will be expanded aggressively overseas. In order to strengthen the overseas base in the prime diagnostic reagents business, Sekisui Chemical will purchase ADI which is a leading company in the clinical reagents field in the U.S. The diagnostic reagents business will be aggressively promoted mainly in North America, based on the products and sales network of ADI.
| 1. | Background
| 1) | In Sekisui Medical, the business resources are concentrated in 2 divisions and 4 business sectors [Diagnostic Division: Diagnostic Reagents and Analytical Tools; Medical Division: Medicine and Drug Kinetics]. In the diagnostic reagents market, the need for convenient, quick, and highly accurate diagnosis is increasing in order to correspond to the aging population and improvement of medical services, and growth in highly efficient diagnostic reagents is expected. Sekisui Medical has established five priority fields (biochemistry, blood coagulation, diabetes, infections and advanced technologies) in the diagnostic reagents business for business expansion, however, a global expansion strategy was necessary to realize further growth and formal entry into the U.S. market has been discussed. | | 2) | ADI is a company which specializes in the blood coagulation field which was established by the current President Richard Hart, and has a firm customer base and a stable earnings model. ADI is also promoting development in the cancer diagnostics field, which is expected to expand. | |
| 2. | Purpose of Acquisition
The purpose of the acquisition is to construct an overseas base for the diagnostic reagents business in a short period of time.
| 1) | Market Applications
| ・ | Utilizing the sales network of ADI, the sales of diagnostic reagents, focusing on the blood coagulation field, will be strengthened in North America | | ・ | Utilizing the sales network of Sekisui Medical, the sales of the diagnostic reagents of ADI will be strengthened in Japan and Asia. | | | 2) | Complementary Products
| ・ | By complementing the diagnostic reagents of ADI in the blood coagulation and cancer fields and the diagnostic reagent products of Sekisui Medical, the competitiveness in both fields will be strengthened. | | |
| 3. | Overview of company to be acquired
| 1) | Company name | : | American Diagnostica Inc. (Current name will remain after acquisition) | | 2) | Business contents | : | Development, production and sales of diagnostic reagents, mainly on the blood coagulation reagents | | 3) | Address | : | 500 West Avenue Stamford, CT 06902 USA | | 4) | Year established | : | 1982 | | 5) | Capital | : | US$31.7thousand (about ¥3 million) | | 6) | Representative | : | Richard Hart | | 7) | Ownership percentage | : | Richard Hart and one relative: 95.94%, others: 4.06%
*[Sekisui America Corporation 100% after acquisition (U.S. subsidiary company 100% investment by Sekisui Chemical)]
| | 8) | Schedule for completion of acquisition | : | early in April , 2009 | | 9) | Employees: | : | 36 | | 10) | Net Sales | : | US$10.3million (about ¥1 billion) [results ending June, 2008] | |
Press Contact
SEKISUI CHEMICAL CO., LTD.
Corporate Communication Department
Fax: (+81) 3-5521-0510
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Disclaimer
This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.
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