HORIBA completes acquisition of SCHENCK-Development Test Systems

2005년8월18일


This is a part of HORIBA's management plan to become the world leading “Total System Supplier” and to double the sales of their engine measurement business within the next 5 years.


Kyoto, Japan-August 17th 2005: HORIBA, Ltd. basically agreed on the acquisition of SCHENCK-Development Test Systems (DTS) in Germany from Carl Schenck AG (Darmstadt, Germany, CEO: Ralf W Dieter, Founded in 1881). SCHENCK-DTS is a world leading manufacturer of test equipment for the automotive industry and its supplier base, supplying products such as Powertrain Research Equipment, Wind Tunnel Balances, Brake Testing and others.

HORIBA, Ltd. takes over DTS branches and resources in 12 countries as a part of the HORIBA Engine Measurement Division (HORIBA EMD), resulting in a rapid extension of their emission measurement and powertrain research and development business activities as a total system supplier to the automotive industry.

In next 5 years, HORIBA EMD plans to double its business to 50 billion Yen, and aims to grow in North America and Asia.

HORIBA, Ltd. plans to invest 5 billion yen in this new business over the next 3 years.


[Backgrounds and aims]

HORIBA EMD has developed global leadership in the exhaust gas analysis, powertrain research & development and various certification test system fields as a core business over the last 40 years. Since HORIBA decided to expand in the powertrain research & development field, SRH Systems Ltd. (Schenck-Ricardo-HORIBA systems Ltd.) was founded in Nov. 2001 as a joint venture company to develop a new generation automation software platform. For HORIBA, this investment was the foundation for future growth in this business area.

Carl Schenck AG is a long established company which is renowned for its high level of engineering ability, infrastructure and its talented resources. Initially, they offered a joint venture with HORIBA to transfer their automotive dynamic test systems business, which covers areas such as engine test, brake test, wind tunnel and others. After detailed discussions, HORIBA agreed to take over this business 100%. With this acquisition, HORIBA more than doubles its own capabilities in the powertrain research & development business field and becomes a “total system supplier” with turn-key and outsource capability. HORIBA intends to be the number one total system supplier in the automotive testing business field.


[Acquisition]

SCHENCK-DTS is a leading company in the fields of engine test, drive train test, break test, wind tunnel and emission test system. HORIBA holds a strong position, with considerable experience and a wide range of technologies in the emission measurement field. When combined with the SCHENCK-DTS capabilities, HORIBA will be able to provide total solutions to its customers, with full turn-key capability from engine/powertrain test to vehicle tests.

The existing SCHENCK-DTS global network (EU, US, Japan and Asia) will be merged into the HORIBA EMD global operation. It will operate under the HORIBA brand, and bring synergy to the EMD business . With this acquisition, HORIBA EMD aims to double their operation in next 5 years from 27 billion yen to 50 billion yen.

HORIBA will invest 5 billion yen in this new business over the next 3 years.

A signing ceremony will be held at Carl Schenck AG, Darmstadt, Germany with both HORIBA and Carl Schenck AG presidents in attendance on August 22.


References

Carl Schenck AG

Brief summary: Carl Schenck AG is an affiliate of DÜrr AG in Germany. Founded in 1881, their sales and service network extends over 20 countries. Test systems for vehicle and parts development and production test equipment is their mainstay business. HORIBA acquired DTS, one of their businesses, which accounts for 20% of their business operation. Sales are about 10 billion yen. The number of DTS employees is approximately 500.

Foundation: 1881
President: Ralf W. Dieter
Address: Landwehrstrasse 55, D-64293 Darmstadt, Germany
Sales: 384 million EUR (about 51.6 billion yen as of year ended fiscal 2004)
 1 Euro is converted into ¥134.44.
Employees: 2,600


SRH Systems Limited

Brief summary: A joint venture company established by Carl Schenck AG, Ricardo plc and HORIBA, Ltd. The development of an automation software platform for engine testing and other applications is its mainstay business.

Foundation: Nov. 2001
President: James Fowler
Sales: 406 K EUR (about 50 million yen as of year ended fiscal 2004)
Employees: 3 (Actually 25 employees are working at SRH. 3 of them are people from HORIBA, Ltd.)


[Words]

Powertrain (Note 1)
General name of engine, inlet and outlet system, transmission, and electric control units

Ricardo plc (Note 2)
A world leading company of supplying automotive technical consultancy and engineering right through from engine design to production to automotive and engine manufacturers throughout the world.

Engine test (Note 3)
There are various essential tests for engine development. The latest generation engines are capable of taking a variety of calibrations because of their electronic control and considerable number of control parameters.

DÜRR (Note 4)
Dürr, whose head office is situated in Stuttgart, Germany, is a major engineering company working in the transportation, mining and materials industries. Dürr recorded EUR 1.9 billion sales with 7,280 employees (as of year ended fiscal 2004)