GS Yuasa Corporation (Tokyo Stock Exchange: 6674; “the Company”) today announced that consolidated subsidiary GS Yuasa International Ltd. (“GS Yuasa”) has signed a share transfer agreement with Sanken Electric Co., Ltd. (“Sanken Electric”) regarding GS Yuasa’s acquisition (“the Acquisition”) of the Infrastructure business of Sanken Electric (“the Business”).

Under the prevailing market environment for GS Yuasa’s Industrial Batteries and Power Supplies business, demand is expected to grow for emergency power supplies. This growth in demand is expected due to Japan’s National Resilience policies and the construction of new data centers and the expansion of existing ones in response to popularization of the IoT, among other factors. Meanwhile, competition in this field has been intensifying largely due to proactive moves by rival companies to enter the market, and competition is expected to continue to intensify further. In light of these circumstances, the Company concluded that integrating the technological and developmental capabilities cultivated by Sanken Electric and the GS Yuasa Group would enable it to strengthen its competitive edge and achieve sustainable growth.

GS Yuasa will continue contributing to the creation of safe and secure societal infrastructure with its extensive product lineup and comprehensive customer support system. As part of these efforts, GS Yuasa will now also be steadily pursuing the creation of synergies made possible through the Acquisition by combining Sanken Electric’s advanced technologies with the Company’s own strengths.

1. Purpose of the Acquisition
(1) To reinforce competitiveness through integration of the technological and developmental capabilities cultivated by both companies;

(2) To augment the weaker areas of each company in existing business fields;

(3) To strengthen operational frameworks in preparation for the emergence of new markets other than the backup power supply market.

2. Overview of the Acquisition
(1) Summary of the Business
Development, manufacture, sale, maintenance, inspection, battery replacement, etc. of power supply equipment products and repair, delivery, installation and installation work planning, wiring work, on-site adjustments and testing, etc.

(2) Operating results of the Business (fiscal year ended March 31, 2020)
Net Sales: Approx. JPY12.5 billion

(3) Acquisition price and payment method
Acquisition price: Approx. JPY4.8 billion
Payment method: To be settled in cash

(4) Acquisition method
Sanken Electric will split the Business from its Power Systems business and transfer it to subsidiary Sanken Densetsu Co., Ltd. (“Sanken Densetsu”) through an absorption-type company split. Thereafter, all outstanding shares of Sanken Densetsu will be transferred to GS Yuasa.

(5) Effective Date of the Acquisition
Scheduled for April 1, 2021.

3. Profile of counterparty in the Acquisition (as of March 31, 2020)
1.Company nameSanken Electric Co., Ltd.
2.Location3-6-3, Kitano, Niiza-shi, Saitama Prefecture, Japan
3.Name & title of representativeTakashi Wada, Representative Director & President
4.Business descriptionDevelopment, manufacture, and sale of power supply equipment products,
and electronic components such as semiconductor devices etc.
5.CapitalJPY20,896 million
6.Date of establishmentSeptember 5, 1946
7.Issued common stock25,098,060 shares
8.Fiscal year endMarch 31
4. Schedule
Date of Board of Directors resolution: August 4, 2020
Date of signing of share transfer agreement: August 4, 2020
Effective date of the Acquisition (scheduled):April 1, 2021
Note: The above effective date of the Acquisition may change as it is subject to approval from the relevant authorities, etc.