Yokohama sells Hamatite to Sika Group
Yokohama has sold its Hamatite automotive and construction sealent business to Swiss company Sika Group AG in a transfer that is scheduled to be completed on 1 November 2021. Yokohama hasn’t released exactly how much Sika is paying for the Hamatite business, but management expects to post a gain on the sale of about ¥5 billion (£33 million; 38 million euros; US$46 million – after tax). However, the exact amount is said to be “subject to change”.
Writing in a statement published on 28 April 2021, Yokohama Rubber Co. Ltd. representatives said the transfer involves the Hamatite businesses operated by Yokohama Rubber, its wholly owned consolidated domestic subsidiary Yokohama Industrial Products Japan Co., Ltd., and overseas Yokohama Group companies Yokohama Industries Americas Inc. (YIA), Yokohama Industrial Products – Hangzhou Co., Ltd. (YIPHZ), and Yokohama Rubber (Thailand) Co., Ltd. (YRTC).
Yokohama Rubber started the Hamatite business in 1958 and has since grown the business with a focus on automotive and construction sealants and adhesives. However, Yokohama reports that the current market environment has become “increasingly severe”. As a result, Yokohama decided that “a future vision for the business’ growth could be best developed together with a global industry leader.”
In order to facilitated the move, Yokohama Rubber will conduct an incorporation-type split of its Hamatite business into a newly established wholly owned subsidiary (company name yet to be determined), referred to hereinafter as Successor Company #1.
(Yokohama Rubber will conduct an absorption-type split of the Hamatite business of its consolidated subsidiary Yokohama Industrial Products Japan Co., Ltd., into a newly established wholly owned subsidiary (company name yet to be determined), referred to hereinafter as Successor Company #2. The business and common stock of Successor Company #2 will then be merged into Successor Company #1, when that company is established.
100% of the common stock of Successor Company #1 will be transferred to Sika Ltd., which is the Japanese subsidiary of the Sika AG.
YIA will transfer the assets and liabilities of its Hamatite business to a special purpose vehicle to be established by Sika Corporation (Sika USA).
YIPHZ will transfer the assets and liabilities of its Hamatite business to a newly established company (company name yet to be determined), referred to hereafter as Successor Company #3, which will be established as a wholly owned subsidiary of Yokohama Rubber’s wholly owned subsidiary Yokohama Rubber (China) Co., Ltd. (YCH). Thereafter, 100 per cent of the common stock of Successor Company #3 will be transferred to Sika (China) Ltd.
YRTC will transfer the assets and liabilities of its Hamatite business to Sika Thailand (see diagram).
Yokohama Rubber president, chairman of the Board Masataka Yamaishi: “Yokohama Rubber’s Hamatite business has a proud 60-year history, during which it has consistently supplied customers with high-quality, superior-performing products based on our advanced technologies. The Hamatite business has been a highly specialized among our businesses, which is mainly the tire business. I am confident that by collaborating with Sika Group, one of the world’s largest specialty chemical companies, the Hamatite business will achieve further growth and continue to meet the high expectations of all its stakeholders. The Yokohama Rubber’s MB (Multiple Business) segment meanwhile will become stronger by concentrating its resources on its core businesses in line with our new medium-term management plan, Yokohama Transformation 2023 (YX2023), that we announced on earlier this year on February 19.”