Kyocera will acquire Sanyo’s mobile phone business. The agreement is planned to become effective April 1, 2008. Under the agreement, Kyocera acquires a comprehensive set of assets relating to the research, development, design, materials procurement, manufacture, sales and marketing of CDMA handsets; PHS handsets; PHS base stations; and wireless communications systems; as well as a range of related technologies, intellectual property and patents.
The acquisition is forecasted to grow worldwide annual revenues from Kyocera’s global telecommunications equipment business to approximately 400 billion Japanese yen (approximately US$3.7 billion). Kyocera plans to offer continued employment to all affected Sanyo employees, totaling approximately 2,000 workers. Kyocera will pay cash for the unit.
The acquisition price will be determined through finalizing processes after April 1, 2008, based on the unit’s total business value of 50 billion Japanese yen (approximately US$467 million), before subtracting the unit’s notional business cash equivalent on hand and adding/deducting interest-bearing transfer debt and transfer cash equivalents as of April 1, 2008, as well as adjustment items agreed to separately, which could result in a final acquisition price approximating 40 billion Japanese yen (about US$375 million). In North America, the acquisition will result in the creation of a new wholly-owned Kyocera subsidiary on April 1, 2008 that will assume the operations of the U.S.-based Sanyo business units and will commence operations separate from San Diego-based Kyocera Wireless Corp.
Kyocera Corporation the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of advanced ceramics. During the year ended March 31, 2007, Kyocera Corporation's consolidated net sales totaled approximately US$10.8 billion with net income of approximately US$895 million.
Sanyo Electric's businesses cover products and services such as rechargeable batteries, photovoltaic systems, HVAC/R equipment, digital imaging devices, telecommunications equipment, home appliances, electronic components and others.
