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Hitachi Koki Co, Ltd., Announces Acquisition of Metabo Aktiengesellschaft
December 11, 2015

1. Background of acquisition 
In addition to offering innovative, high-performance, high-quality products and services that result in a high level of customer satisfaction, Hitachi Koki Group has been considering methods to expand the scale of its businesses with M&A as an important strategy, and continued careful selection of candidates whose synergy could be compatible.

Regarding shares of Metabo; PTI, a holding company of Metabo, owned 80 percent, the founding family owned 10 percent and executives & employees of Metabo owned 10 percent. As a result of negotiations, Hitachi Koki and Chequers Capital Partners S.A.; an investing company headquartered in Paris, France, agreed that Hitachi Koki will acquire 80% of shares of Metabo by doing an acquisition of PTI. Additionally, Hitachi Koki would acquire 100% ownership of Metabo by acquisition of the remaining 20% of shares from the founding family and executives & employees of Metabo at the same time.

Metabo is a global brand that manufactures power tools with world-class, high-level technologies. Having sales offices in 25 countries, Metabo established a firm position in the market, particularly in Germany and other countries in Europe. Metabo has product advantages such as high-power Li-ion battery mounted products based on its high output cell technology and metal processing products, including disk grinders.

While Hitachi Koki has high market share in Japan and a large sales channel through DIY stores and Independent Channel distribution in the US, Hitachi Koki is positioning to further expand its sales in Europe, which Hitachi Koki regards as a prior strategic region. Hitachi Koki is rolling out a series of products developed to pursue miniaturization, weight savings and high efficiencies such as AC brushless motor mounted products, long lifetime and high-capacity Li-ion battery mounted products. Pneumatic tools such as nailers are Hitachi Koki’s advantage in the market as well.

Hitachi Koki would obtain the Metabo brand and strong sales channel in Europe such as Germany. At the same time, Hitachi Koki could enhance procurement ability in the European region, which contributes to reducing EURO exchange risk that has been a long-standing issue. Additionally, Hitachi Koki and Metabo could expect synergy such as strengthening the product line-up for Metabo by supplying Hitachi Koki’s technology and development efficiencies to Metabo’s development capabilities of high output power tools; therefore furthering sales expansion of products within both brands and utilizing mutual sales and service network of both parties.

Hitachi Koki and Metabo have mutual strengths in terms of complementing development and sales capabilities and product line-up. Hitachi Koki considers Metabo as the best partner for improvement of its enterprise value.

Hitachi Koki Group aims to quickly achieve its management target of an operating margin of 10% or higher, by expansion of business scale and acceleration of strengthening earning capacity through ensuring those various synergies.

About Hitachi Power Tools 
Hitachi Power Tools (Hitachi Koki USA, Ltd) offers an extensive line of professional grade power tools and accessories for woodworking, metalworking, drilling and fastening, concrete drilling and cutting, outdoor power equipment products as well as a complete line of pneumatic nailers, staplers, compressors and collated fasteners. From headquarters in Braselton, GA, and satellite offices in the United States and Canada, Hitachi Power Tools supports over 4000 retail locations carrying Hitachi tools and over 1000 authorized service centers. Hitachi Koki USA, Ltd. is the North American division of Hitachi Koki Japan. For more information on Hitachi Power Tools, visit www.hitachipowertools.com. For more information on Hitachi Koki Co, Ltd., visit www.hitachi-koki.com.

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