Sumitomo Electric Acquires Keystone, U.S. Powdered Metal Component Manufacturer
September 6, 2016
Sumitomo Electric Industries, Ltd.
Sumitomo Electric Industries, Ltd. has decided to acquire Keystone Powdered Metal Company, a U.S. manufacturer of powdered metal components* (hereinafter referred to as "Keystone," headquartered in Pennsylvania, USA).
Sumitomo Electric Industries, Ltd. has decided to acquire Keystone, a U.S. manufacturer of powdered metal components. Agreement will be entered into between Keystone; Sumitomo Electric U.S.A. Holdings, Inc. (headquarters: New York, USA; President: Yoshitomo Kasui; hereinafter, "SEUHO"), a U.S. 100% subsidiary of Sumitomo Electric; and a special purpose corporation to be established by SEUHO. SEUHO will acquire 100% stock of Keystone through the merger between Keystone (merging company) and the special purpose corporation. The acquisition is scheduled to be completed by end-September.
The powdered metal components business of the Sumitomo Electric Group has expanded globally from Sumitomo Electric Sintered Alloy Ltd. (headquarters: Takahashi, Okayama; President: Tetsuya Hayashi) as the mother plant, and supplies a variety of products primarily to Japanese manufacturers of cars, air conditioners, and automotive components. This acquisition will enable us to expand sales networks for U.S. car manufacturers as well as auto-parts manufacturers, enhance our presence in the U.S., and capture further business opportunities.
Profile of Keystone
|Name||Keystone Powdered Metal Company|
|Sales||US$119 million (2015)|
|Head Office||Pennsylvania, USA
(Plants: 2 in Pennsylvania, 1 in North Carolina)
|Business||Manufacture and sales of powdered metal machine components and assembly parts|
* Powdered metal components are machine components made primarily from iron powder, and used extensively for uses ranging from engine parts, drive unit components, and electrical components to air-conditioner parts of automobiles.