Expansion of the U.S. material handling business through the acquisition of Central Conveyor
First written in FY2018. 1 of 6 entries say "Achieved", first in FY2019-Q1. Latest entry: FY2020.
No other company in this theme has enough history to compare yet.
- FY2020Additional impairment loss recorded after the acquisitionAnnual report
「In addition, because a considerable deterioration in the business environment in the United States and other factors was expected as of the end of the current consolidated fiscal year due to the spread of COVID-19, the significant assumptions used in valuing goodwill and other assets were reviewed and the valuation was recalculated.」
In connection with the Central Conveyor acquisition, additional impairment losses of ¥364 million on goodwill and ¥54 million on trademark rights, totaling ¥419 million, were recognized in light of the deterioration in the US business environment and other factors. - FY2020-Q2Purchase price allocation finalizedAnnual report
「With the finalization of this provisional accounting treatment, a material revision to the initial allocation of the acquisition cost has been reflected in the comparative information included in the quarterly consolidated financial statements for the six months ended the second quarter of the current fiscal year. Goodwill of ¥13,291 million had been recognized provisionally, but decreased by ¥7,658 million upon completion of the purchase price allocation.」
The purchase price allocation for the Central Conveyor acquisition was finalized, reducing the provisionally recognized goodwill of ¥13,291 million by ¥7,658 million. Post-acquisition accounting is progressing toward finalization. - FY2019Emergence of profitability issues after the acquisitionAnnual report
「Net sales increased year on year partly because all equity interests in Central Conveyor Company, LLC (U.S.) and its 5 subsidiaries were acquired and included in the scope of consolidation from the first quarter. However, the goodwill and trademark rights recorded at the acquisition of Central Conveyor Company, LLC, a consolidated U.S. subsidiary, were performing below the earnings plan initially expected for the acquisition due to changes in market structure and other factors, so the company revised its future plan. As a result, the estimated fair values of the goodwill and trademark rights fell below their carrying amounts, and the carrying amounts of the goodwill and trademark rights arising from the acquisition were reduced to their recoverable amounts, with the decrease recorded as an impairment loss under extraordinary losses.」
While the revenue contribution from the acquisition and consolidation is described, performance fell below the earnings plan initially expected for the acquisition, and impairment losses of ¥1,924 million on goodwill and ¥199 million on trademark rights, totaling ¥2,123 million, were recorded. - FY2019-Q3RestatedAnnual report
「Net sales increased year on year, partly because all equity interests in Central Conveyor Company, LLC (U.S.) and its 5 subsidiaries were acquired and included in the scope of consolidation from the first quarter.」
The acquisition and consolidation of Central Conveyor and its 5 subsidiaries continued to contribute to higher material handling sales in the third quarter. The acquisition itself had been completed by the previous quarter. - FY2019-Q1AchievedAnnual report
「Business combination date: 15 June 2018 Legal form of business combination: Acquisition of equity interests (100%) Voting rights ratio before acquisition: 0% Voting rights ratio after acquisition: 100%」
The acquisition of all equity interests in Central Conveyor was completed on 15 June 2018 and was reflected in the consolidated results from the current quarter with a post-acquisition voting rights ratio of 100%. The acquisition consideration was US$141 million, and the acquisition procedures and commencement of consolidation have been completed. - FY2018First statedAnnual report
「The company decided that its consolidated subsidiary U.S. TSUBAKI HOLDINGS, INC. would acquire all equity interests in Central Conveyor Company, LLC, thereby making the company and its subsidiaries consolidated subsidiaries, and signed an equity transfer agreement on 24 April 2018. Under the agreement, all equity interests were acquired on 15 June 2018.」
A material handling equipment integrator with a customer base in the U.S. automotive and other industries was acquired for US$141 million, resulting in a 100% ownership interest after the acquisition.