Ricoh and Hitachi Reach Basic Agreement on Ricoh's Acquisition of Hitachi Printing Solutions, Ltd.
TOKYO--(BUSINESS WIRE)--March 31, 2004--Ricoh Co., Ltd. (TSE:7752)('Ricoh') and Hitachi, Ltd. (NYSE:HIT)(TSE:6501)('Hitachi') today announced that Ricoh and Hitachi have signed a basic agreement to the effect that Hitachi will transfer all its shares of Hitachi Printing Solutions, Ltd. ('Hitachi PRS'), a 100% owned subsidiary, to Ricoh. Details are as follows.
1. Reasons for the basic agreement
Ricoh is committed to strengthening its printer business, an
important pillar of its growth strategy. To this end, Ricoh will
strengthen product lines for the office color printer market,
printers for mission-critical systems and POD, or print-on-demand,
markets, in which Ricoh is yet to participate. In addition, Ricoh
will enhance IT sales channels on top of its conventional copier
marketing channels. Through these initiatives, Ricoh will optimize
"Total Document Volume" as the strategic objective of its imaging
solutions business.
In accordance with the basic agreement, Ricoh will acquire Hitachi
PRS, which enjoys considerable success with its printers for
mission-critical systems, high-speed printers for the POD markets
and also low-end color laser printers. Hitachi PRS's participation
in the Ricoh group will not only create synergistic effects in the
areas of technology, products and human resources for Ricoh
printer business but also contribute to increasing Ricoh's
corporate value.
Hitachi, for its part, is making every possible effort to ensure
that all its businesses win in the global marketplace in
accordance with its mid-term business plan: "i.e.HITACHI Plan II."
This basic agreement was made within the context of this plan.
Hitachi sees printers as important products for its information
and communication systems business and intends to provide its
customers with even higher valued-added solutions, maintaining all
the while a strong business partnership with Ricoh.
2. Corporate profile of Hitachi PRS
(1) Name Hitachi Printing Solutions, Ltd.
(2) President Toshiaki Katayama
President and Chief Executive Officer
(3) Address 15-1, Konan 2-chome, Minato-ku, Tokyo, Japan
(4) Date of incorporation October, 2002
(5) Business content Printers and related equipment, software
development, product development, design,
production and marketing
(6) Fiscal year-end March 31
(7) Number of employees 820 (Group 2,200) as of December, 2003
(8) Capital stock 5,000 million yen (Number of shares held
100,000)
(9) Net sales About 60,000 million yen (estimate for
fiscal year ended in March 2004)
3. Changes in share holding ratios
Current Ricoh 0% Hitachi 100%
After the transfer (plan) Ricoh 100% Hitachi 0%
4. Schedule
Scheduled transfer of shares: October 2004
5. Influence on Ricoh and Hitachi consolidated financial figures
None for fiscal 2003 ending on March 31, 2004 is expected.
Influence in fiscal 2004 ending on March 31, 2005 will depend on
result of current negotiations.
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