Stanley Electric Co., Ltd. TSE:6923

Stanley Electric : Notice Regarding Expansion of South American Business Through Acquisition of Angstrom Electric Ltda.

Published

Source: MarketScreener

Stanley Electric Group-News Release

October 28, 2024

Acquisition of Angstrom Electric Ltda. as Subsidiary

Stanley Electric Co., Ltd.

Stanley Electric Co., Ltd. (Head office: 2-9-13 Nakameguro, Meguro-ku, Tokyo; President: Yasuaki Kaizumi) has agreed to acquire shares in Angstrom Electric Ltda., making it a subsidiary.

1. Purpose of Acquisition

Stanley has a consolidated subsidiary, Stanley Electric do Brasil Ltda. (hereinafter "SEB"), in São Paulo state, Brazil and has been focusing on the production and supply of automotive lighting equipment to Japanese OEMs.

In anticipation of the expanding markets for motorcycles and European/American automobile manufacturers in South America in the future, in addition to the existing SEB, we have decided to acquire 75% of the shares in Angstrom Electric Ltda., which has a production plant (Manaus, Amazonas state) and a technology center (São Paulo, São Paulo state), and welcome the company into the Stanley Group.

By strengthening our base, Stanley will be able to supply competitive products to motorcycle manufacturers concentrated in Manaus. Furthermore, by utilizing the technology center owned by Angstrom Electric Ltda., Stanley will establish a comprehensive system in Brazil for all processes from design and development to production of automobile and motorcycle lighting equipment targeting South America.

2. Overview of Acquired Company

Company name

Angstrom Electric Ltda.

Location

Av. Cupiuba, 761 Distrito Industrial Manaus, Amazonas-Brazil,

69075-060

Legal representative

Nagesh Kumar Palakurthi

(Legal representative)

Main business

Manufacture and assembly of motorcycle and commercial vehicle lamps

Capital

133,398,000 Brazilian reals (approximately 3.3 billion yen)

Establishment date

November 6, 2007

Major shareholders and

Angstrom 2021 Holdings, LLC 100%

ownership ratio

  1. Timing of Consolidation
    October 25, 2024: Contract conclusion date
    November 30, 2024: Share transfer execution date (scheduled)
  2. Future Outlook

The impact of this acquisition is anticipated to have a minimal effect on Stanley consolidated financial results for the fiscal year ending March 2025.

For inquiries regarding this news release, please contact:

IR Department, Stanley Electric Co., Ltd.

2-9-13 Nakameguro, Meguro-ku, Tokyo, Japan 153-8636

Tel: +81-3-6866-2207