Founded in 1973, Milltronics designs and manufactures CNC knee mills, toolroom bed mills, vertical machining centres, combination lathes, slant-bed lathes, horizontal machining centres, and bed mills.
Takumi designs and manufactures CNC vertical machining centres, double column machining centers, high speed bridge machines and other machine tools, with sales primarily in Taiwan, China and Europe.
The Takumi purchase is subject to approval by the shareholders of Takumi at a meeting to be held before the end of July 2015. Minneapolis, Minnesota, USA-based Liberty Diversified International Inc (LDI) is the owner of approximately 98% of the outstanding shares of Takumi and has agreed to cause the required Takumi shareholder approval to be obtained. LDI is additionally the sole shareholder of Milltronics. LDI is a privately-held family of businesses with more than 1,600 employees.
Gregory Volovic, president of Hurco, says: "We believe these strategic acquisitions will significantly benefit global customers and Hurco. The Milltronics and Takumi machine tool brands are strong global brands for expansive machine tool product lines.
"Milltronics and Takumi have a combined customer base exceeding 18,000 installed machines throughout 30 countries. Hurco plans to continue to market the Hurco, Milltronics and Takumi branded machine tool products separately, given the distinguishing, unique values of each product line and brand.
"The Hurco, Milltronics and Takumi machine tool product lines should benefit from development of product enhancements, technologies and models, due to the ability to leverage shared resources and cross-utilisation of proven engineering designs. We believe these acquisitions will assist in our efforts to expand our global platform, particularly in strategic markets, such as China and Latin America, and to achieve manufacturing cost reductions from economies of scale and manufacturing efficiencies.
"Takumi and Milltronics machine tool products and end-user markets are highly complementary to Hurco machine tool products and end-user markets, in that approximately 60% of Milltronics and Takumi's machine tool lines are unique, will expand our consolidated product range and customer base, and will accelerate emerging market penetration.
"For example, unlike Hurco and Milltronics machine tools, Takumi machines are equipped with industrial controls from Fanuc, Siemens, Mitsubishi or Heidenhain for high volume manufacturing environments. The combined Hurco, Milltronics and Takumi businesses will represent one of the most comprehensive product portfolios in the machine tool industry, with more than 150 different models. We believe that these two acquisitions should be accretive to Hurco's consolidated earnings in its 2016 fiscal year."
Chairman of the board and CEO of Hurco Companies Inc Michael Doar, adds: ""Since Hurco was founded in 1968, the cornerstone of the company has been its culture of innovation that focuses on consistent and continuous research and development. We are confident this culture will transfer to Milltronics and Takumi, as they are both companies comprised of people who share our passion to advance the manufacturing industry through innovation. We look forward to working with Milltronics and Takumi employees and customers and sharing the success of our efforts with our shareholders."
Hurco machines are supplied in the UK through Hurco Europe. Takumi's website does show its machines as available in the UK, but as at the posting of this news story, Machinery cannot identify that sales partner. There is no UK sales partner for Milltronics machines, although there is an international sales partner located in Ireland, H W Machine Tools, Dublin.
