Hitachi to acquire Sullair

Move puts company in a full-scale entry into North American industrial business.

Hitachi, Ltd. and Accudyne Industries recently announced that the two companies have entered into an agreement regarding Hitachi’s acquisition of Accudyne’s subsidiaries and certain related assets that manufacture and sell air compressors under the “Sullair brand.

Hitchi sources report that to become the “Innovation Partner for the IoT Era” it is accelerating collaborative creation with customers through its Social Innovation Business., which is made up of a market-in business structure composed of “front”, “platform”, and “products” in April 2016.

Hitachi’s “front” business has strived to work side by side with its customers to create new value through the rapid and effective utilization of its Social Innovation Business by leveraging digital technology, with its Lumada IoT platform at its core.

Hitachi’s goal in this acquisition is to gain access to Sullair’s global sales network, mainly in North America. Furthermore, Hitachi will accelerate the global rollout of the Social Innovation Business by providing Sullair’s customer base with digital solutions or IoT-compatible products that leverage the expertise in IT and OT (operational technology) that Hitachi has cultivated over many years.

As for the product business, in an effort to establish a strong product business that meets a broad range of industrial needs, Hitachi has been developing the product business through the unified strengths of the Industrial Products Business Unit, which integrated Hitachi’s industrial product business in May 2015, and Hitachi Industrial Equipment Systems Co., Ltd., which handles small- or medium-sized industrial products.

Air compressors in particular have been positioned as a core business, in which Hitachi provides high-quality, high-efficiency products mainly in Japan and Asia. Hitachi plans to add its products to Sullair’s highly complementary product lineup, and utilize the global sales network Sullair has established, mainly in North America, and increase the scale of the air compressor business.

Since its foundation in 1965, Sullair has been selling its very reliable air compressor products on a global scale. Sullair has established a strong sales network and customer base especially in North America. Accudyne has selected Hitachi as the best partner to ensure long-term success of Sullair given its sales network in Japan and Asia as well as the complementary relationship. Integration into Hitachi will secure a bright future for Sullair and its employees.

“I am very pleased to announce that Hitachi has today agreed with Accudyne to proceed with the acquisition of Sullair, a leader in the air compressor business. Through this fusion with Sullair’s strengths, Hitachi will increase its competitiveness and strengthen the air compressor business, and at the same time, by utilizing Sullair’s global footprint, mainly in North America, we will accelerate the global rollout of the Social Innovation Business,” says Masakazu Aoki, executive vice president at Hitachi and CEO of the Industrial Products Business Unit.

The agreed purchase price of Sullair is US$1.245 billion.

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