YAGEO Corporation (TWSE: 2327, hereafter referred to as "YAGEO"), a global leader in electronic components, has announced its plan to acquire Shibaura Electronics (TSE: 6957), a Japanese company renowned for its expertise in NTC thermistor manufacturing. The acquisition is part of YAGEO's strategy to expand its sensor business and enhance its global market presence.
Purpose of M&A
YAGEO, founded in 1977 and headquartered in Taiwan, is a major player in the global electronic component industry. The company offers a wide range of passive component technologies and serves various end markets across the globe. YAGEO operates 61 manufacturing sites in 35 countries and 20 R&D centers, employs over 40,000 people, and generates approximately $4 billion in annual sales. With an extensive global presence and a strong R&D network, YAGEO is well-equipped to further expand its business through strategic acquisitions. YAGEO has demonstrated an excellent track record of successful acquisitions, including recent deals such as the acquisition of Telemecanique Sensors and Heraeus Nexensos. These acquisitions have significantly strengthened YAGEO’s global presence and market competitiveness. The company attributes its success to effective integration processes and a strong focus on retaining top talent, which drives innovation and excellence across its operations.
Founded in 1953, Shibaura Electronics initially specialized in copper suboxide rectifiers and thermistors. Today, it is a leading global player in the thermistor market, employing over 4,800 people and generating annual revenues exceeding 32 billion yen. Shibaura serves diverse industries, including automotive, industrial equipment, home appliances, and medical sectors.
The acquisition will allow YAGEO to leverage Shibaura’s established technology in the growing sensor market. By integrating Shibaura’s strengths with its own global distribution network, YAGEO expects to accelerate market share growth, especially in key regions like the Americas and EMEA (Europe, the Middle East, and Africa).
Acquisition Terms
YAGEO aims to acquire 100% of Shibaura’s shares and has proposed a purchase price of JPY 4,300 per share, representing a premium of 36.94% over Shibaura’s closing share price as of February 4, 2025. The deal will proceed with a tender offer, expected to begin on May 7, 2025, after necessary regulatory approvals and other required procedures are completed.
Schedule
February 5, 2025: YAGEO's Board of Directors approves the tender offer to acquire Shibaura Electronics.
May 7, 2025: The tender offer is expected to commence, subject to regulatory approvals and necessary procedures.
