OMRON will sell its founding electronic components business to a US investment fund effective 1 October. The company explained that the sale was necessary to enhance enterprise value at the group level amid intensifying competition and declining profitability.
OMRON has announced plans to sell its founding electronic components business to a US investment fund. The transaction is expected to be completed as of 1 October and is positioned as part of the group's growth strategy.
The electronic components business generated revenue of ¥105.4 billion in the fiscal year ended March 2025, accounting for approximately 13% of total group revenue. Its operating profit margin, however, remained low at 0.3%, and improving profitability had been identified as a challenge.
Competition in the business intensified with the rise of Chinese rivals, while a sluggish EV market in Europe and the US and soaring raw-material prices also contributed to declining profitability.
OMRON had announced in March this year that it would sell the business to US investment fund The Carlyle Group, with the aim of returning to a growth trajectory.