横森製作所 used LinkedIn to narrow down potential acquisition targets, then acquired SENTRY STEEL in the United States and made it a subsidiary. It is pursuing an M&A strategy that combines expansion of its local operations with repeated in-person meetings.
Japanese companies with world-class technical capabilities are expanding overseas, even in niche fields. 横森製作所, which provides an integrated range of services for steel staircases, from design and fabrication to delivery and installation, is pursuing overseas expansion by combining IT-enabled information gathering with on-the-ground assessment. This article examines its search for potential acquisition targets using LinkedIn and its expansion into the United States as a case study in overseas M&A.
According to the company’s president, Ariake Takeshi (有明 威), it established a local subsidiary in the United States and acquired SENTRY STEEL in Kentucky, making it a subsidiary. Against a backdrop of population growth and construction demand in the U.S. market, the company is expanding its business portfolio by working with local companies.
In considering overseas M&A, the company has emphasized dialogue in the field in addition to reviewing information online. Its process is to confirm the locations of potential acquisition targets, compile a list, make contact through consulting firms and M&A intermediaries, and then meet with the companies in person before making a decision.
Its expansion into the United States also faced the challenge of the COVID-19 pandemic. However, with government approval under the essential-worker rules and tax support, the company stabilized cash flow, worked to accept local personnel and build trust, and adopted an operating model that delegates decision-making to the local CEO.