Agilent Gets 100% Ownership of Yokogawa Analytical Systems
Agilent Technologies Inc. and Yokogawa Electric Corp. announced January 30 that their joint venture, Yokogawa Analytical Systems, will become a wholly owned Agilent subsidiary effective Feb. 1, 2006.
Yokogawa will receive around $106 million from this transaction, including $98 million from Agilent for its 49% share in the joint venture and $7.5 million in dividends from Yokogawa Analytical Systems.
Yokogawa Analytical Systems was founded as a joint venture in 1992 by Agilent (then part of HP and 51% owner) and Yokogawa (49% owner). Yokogawa Analytical Systems makes the ICP/MS, an advanced analytical system used in trace element determination and speciation for laboratory and other scientific applications.
With the foundation of the joint venture, Agilent transferred its sales and support of advanced laboratory analytical systems to Yokogawa Analytical Systems; Yokogawa transferred all of its laboratory business, including equipment under development, to the joint venture. The two parent companies have been supporting Yokogawa Analytical Systems not only to further their own business interests, but also to realize the growth and success of their joint venture.
Agilent and Yokogawa said that the joint venture had achieved its original objectives set 13 years ago. In order to expand the market presence for its products and services in Japan, Agilent decided that the timing was right for Yokogawa Analytical Systems to become a wholly owned unit.
By selling its stake in the joint venture, Yokogawa will be able to dedicate additional resources to its core businesses, including strengthening international engineering capabilities for the industrial automation field and investing in a new semiconductor facility in Sagamihara.
"Yokogawa and Agilent have had a very strong, cooperative relationship over the past 13 years," said Ryuji Kanno, president, Yokogawa Analytical Systems. "This acquisition of Yokogawa's minority share is a positive step for both companies."
Source: Agilent News January 30, 2006