Electronics Production | September 12, 2011
Omron acquires BST
Omron (China) Co., Ltd. and Shanghai Best Electrical Appliance Manufacturing Co., Ltd. (BST) entered into an equity transfer agreement on September 8, 2011.
Omron (China) will acquire a 100% stake in BST. BST is a manufacturer of power latching relays in China. In China, where smart meters are now in the introductory stage, power latching relays for smart meters have high growth potential. In fact, power latching relay sales in China are expected to account for about 65% (quantity basis) of worldwide sales by fiscal 2015, growing into a 15-20 billion yen business. Aiming to further expand and strengthen its relay business, Omron looks to make a quick entry into China, a new high-growth market for power latching relays, and secure a robust competitive position. The decision to acquire BST is a step toward realizing this goal. Through the acquisition of BST, Omron will aim for sales of 5 billion yen for power latching relays in 2015 through synergy of both companies' strengths.