Acquires Shares in Two Companies to Support Business Succession
Apr 05, 2019
TOKYO, Japan – April 5, 2019 – ORIX Corporation (“ORIX”) announced today that it has acquired shares in the two companies below, which are faced with business succession issues such as nurturing successors and achieving sustainable business growth. Going forward, ORIX will utilize its financial and business knowhow, its sales networks, and other management resources to provide management support to the two companies.
Thompson Towa Co., Ltd. is a golf course turf irrigation equipment provider with a business history stretching back some 37 years. Despite operating in a niche business sector, it boasts a rich record of installing equipment, and it has established strong business relationships with numerous golf courses centered on the Kanto region. ORIX acquired shares in Thompson Towa after agreeing to owner shareholder intentions for maintaining the company’s medium and long-term management system and securing employment.
Tokyo Soil Research Co., Ltd. is a ground survey company founded 52 years ago. It boasts the third highest revenues in its industry*1. The company possesses a high level of expertise in the field of ground surveys, including numerous independent patents, and provides an integrated service ranging from ground surveys to building diagnostics. Going forward, the company expects increased business opportunities in the fields of improving national resilience including disaster prevention and mitigation, and repairs and maintenance to aging infrastructure such as highways and railroads; having acquired shares in the company, ORIX will provide support for strengthening management systems and business growth.
ORIX has established corporate sales bases across Japan and, in addition to the provision of leases and loans, caters to a wide range of corporate management issues. In 2018, ORIX established an investment team dedicated to dealing with the business succession needs of small and medium-sized companies, and promoting initiatives aimed at supporting the resolution of management problems. Together with owners and management executives, ORIX will work both to improve companies’ medium and long-term sustainability and growth and to secure employment stability, by strengthening successor training and business management systems and expanding sales destinations.
There are approximately 33.61 million employees working at small and medium-sized companies in Japan, accounting for roughly 70 percent of the country’s entire workforce. However, the modal age of company top executives is now 66 years old, up from 47 years old 20 years ago; the rise in executive ages is having an impact, with approximately 30 percent of companies that close or suspend their businesses citing “a lack of successors” as the reason*2.
Going forward, ORIX will utilize its corporate sales networks and the expertise it has cultivated in finance and business promotions to cater to corporate management issues; in this way, the company intends to contribute to the revitalization of regional economies.
*1 According to “Information sharing systems related to registered companies in the construction and related industries,” published by the Ministry of Land, Infrastructure, Tourism and Transport.
*2 According to “The current state of business succession and related problems,” and “About the business succession guidelines,” published by the Small and Medium Enterprise Agency, and to “Internet survey on the business succession of small and medium enterprises,” published by the Japan Finance Corporation.
|Company name||Thompson Towa|
|Date of establishment||December 2009 (started business in December 1981)|
|Representative||Representative Atsushi Hasegawa|
|Number of employees||9|
|Business content||Installation of golf course turf irrigation equipment|
|Date of transfer of shares||March 2019|
|Company name||Tokyo Soil Research Co., Ltd.|
|Date of establishment||April 1966|
|Representative||Representative Tetsuo Tabei|
|Number of employees||231|
|Business content||Ground surveys, all manner of surveys into buildings and public works, construction consulting|
|Date of transfer of shares||March 2019|
Corporate Planning Department
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses.
Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile related, real estate and environment and energy related businesses. Since entering Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in 38 countries and regions across the world.
Going forward, ORIX intends to utilize its strengths and expertise, which generate new value, to establish an independent ORIX business model that continues to evolve perpetually. In this way, ORIX will engage in business activities that instill vitality in its companies and workforce, and thereby contribute to society. For more details, please visit our website: https://www.orix.co.jp/grp/en/
(As of September 30, 2018)
Caution Concerning Forward Looking Statements:
These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results that differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s annual report on Form 20-F filed with the United States Securities and Exchange Commission and under “(4) Risk Factors” of the “1. Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2017 – March 31, 2018.”
- View PDF of this release