Hitachi Completes Acquisition of MA micro automation of Germany, a Leading Provider of Robotic and Automation Technology

Rhea-AI Summary

Hitachi has completed the acquisition of MA micro automation GmbH, a leading provider of robotic and automation technology based in Germany. MA micro automation will operate under JR Automation Technologies, to expand its reach in the global advanced automation market, particularly in Europe, North America, and Southeast Asia. The acquisition, finalized on September 30, 2024, aims to grow JR Automation's presence in the medical segment and diversify offerings in medical and high-precision automation.

The deal is expected to expand sales opportunities for JR Automation in Europe and MA micro automation in the U.S., as well as strengthen their presence in the Asia Pacific market, particularly in Singapore. Hitachi aims to become a global leader in the robotic SI business, leveraging its strengths in IT, OT, and products through the Lumada customer co-creation framework to increase productivity and maximize customer value.

Positive

• Expansion into global automation markets, particularly in medical and advanced battery fields
• Diversification of offerings in medical and high-precision automation
• Increased sales opportunities in Europe, U.S., and Asia Pacific markets
• Strengthened presence in Singapore
• Potential for increased productivity and value creation through Hitachi's IT, OT, and product strengths

Negative

• None.

MA micro automation will be under operation of JR Automation.
The acquisition expands JR Automation's reach into global automation markets in medical, advanced battery and other fields.

HOLLAND, Mich., Sept. 30, 2024 /PRNewswire/ -- Hitachi Ltd. (TSE: 6501, "Hitachi") has completed the acquisition of MA micro automation GmbH ("MA micro automation", headquartered in St. Leon-Rot, Germany), a leading provider of robotic and automation technology. MA micro automation will be under operation of JR Automation Technologies, LLC ("JR Automation") to grow the company's reach in the global advanced automation market, such as Europe, North America, and Southeast Asia. Hitachi and MAX Management GmbH (the seller, a subsidiary of MAX Automation SE) signed a stock purchase agreement in April, 2024, and pursuant to this agreement finalized the deal on September 30, 2024. Both JR Automation and MA micro automation have strong, recognized brands and will continue to do business under their existing names.

Hitachi and JR Automation welcome MA micro automation of Germany, a leader in Robotic and Automation Technology.

"MA micro automation's capabilities are a perfect complement to JR Automation's plans for growth in the medical segment," said Dave DeGraaf, CEO at JR Automation. "We have been impressed not only by their solutions and R&D capabilities, but also by their strong culture and shared values."

The acquisition of MA micro automation adds value for customers worldwide with diversified offerings in medical and high-precision automation. The deal also expands sales opportunities for JR Automation in Europe and for MA micro automation in the U.S. as well as business portfolio for the Asia Pacific market with a stronger presence in Singapore.

"This collaboration is poised to deliver increased value and support to our customers worldwide, particularly in the medical market vertical where MA micro automation has established a strong foothold," said Joachim Hardt, CEO at MA micro automation.

The field of robotic SI, which involves a massive amount of data, is playing a central role in connecting shop floor and top floor to achieve overall optimization. With this acquisition of MA micro automation, Hitachi is globally expanding and strengthening its capabilities in the robotic SI field and develop "Total Seamless Solution^*1" that solve issues between shop floor and top floor to create new value. "By welcoming new colleagues, Hitachi Group aims to be a global leader in the robotic SI business, and strive to increase the productivity of frontline workers and maximize customers' corporate value by utilizing the strength in IT, OT (Operational Technology) and products through Lumada^*2's customer co-creation framework," said Kazunobu Morita, Vice President and Executive Officer, CEO of Industrial Digital Business Unit, Hitachi, Ltd.

With the deal closed, JR Automation and MA micro automation are carrying out post-merger integration plans and reaching out to key stakeholders including customers and suppliers. The companies are also planning a celebration at MA micro automation's headquarters in Germany on October 22.

^*1 "Total Seamless Solution" is a registered trademark of Hitachi, Ltd. in the U.S., and Japan.
^*2 Lumada: A collective term for solutions, services and technologies based on Hitachi's advanced digital technologies for creating value from customers' data accelerating digital innovation. https://www.hitachi.com/products/it/lumada/global/en/index.html

About MA micro automation
Founded in 2003, MA micro automation is headquartered in St. Leon-Rot, Germany and has locations in Singapore and the U.S. The company employs about 200 people and specializes in automation equipment and specialty machines for the medical industry. Examples include production and testing systems for contact lenses, diagnostic consumables, insulin pens, auto-injectors and several other medical devices. More at https://www.micro-automation.de/en/

About JR Automation
Established in 1980, JR Automation is a leading provider of intelligent automated manufacturing technology solutions that solve customers' key operational and productivity challenges. JR Automation serves customers across the globe in a variety of industries, including automotive, life sciences, aerospace, and more. 

In 2019, JR Automation was acquired by Hitachi, Ltd. in a strategic effort towards offering a seamless connection between the physical and cyber space for industrial manufacturers and distributors worldwide. With this partnership, JR Automation provides customers a single-source solution for complete integration of their physical assets and data information, offering greater speed, flexibility, and efficiencies towards achieving their Industry 4.0 visions. JR Automation employs over 2,000 people at 21 manufacturing facilities in North America, Europe, and Asia. For more information, please visit https://www.jrautomation.com.

About Hitachi, Ltd.
Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of "Digital Systems & Services" – supporting our customers' digital transformation; "Green Energy & Mobility" – contributing to a decarbonized society through energy and railway systems, and "Connective Industries" – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company's revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information on Hitachi, please visit the company's website at https://www.hitachi.com.

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SOURCE JR Automation

FAQ

What company did Hitachi acquire and when was the acquisition completed?

Hitachi acquired MA micro automation GmbH, a German provider of robotic and automation technology. The acquisition was completed on September 30, 2024.

How will the acquisition of MA micro automation affect JR Automation's market presence?

The acquisition will expand JR Automation's reach into global automation markets, particularly in Europe, North America, and Southeast Asia. It will strengthen JR Automation's presence in the medical segment and diversify its offerings in medical and high-precision automation.

What are the expected benefits of the MA micro automation acquisition for Hitachi (HTHIY)?

The acquisition is expected to expand sales opportunities for JR Automation in Europe and MA micro automation in the U.S., strengthen Hitachi's presence in the Asia Pacific market, and position Hitachi as a global leader in the robotic SI business. It aims to increase productivity and maximize customer value through Hitachi's IT, OT, and product strengths.

Will MA micro automation continue to operate under its existing name after the acquisition by Hitachi (HTHIY)?

Yes, both JR Automation and MA micro automation will continue to do business under their existing names, as they have strong, recognized brands in their respective markets.