Acquisition brings about safety focus

Omron Corporation and Scientific Technologies have announced that they have entered into a definitive agreement under which Omron will acquire STI for $94 million plus net cash and working-capital adjustments.

The transaction, which does not include the purchase of STI's Automation Products Group was approved by both companies' boards of directors.

Omron's Industrial Automation Business (IAB) will capture a key position in North America as a result of this acquisition.

In line with the automation and globalisation of production processes, manufacturers have increased their focus on safety, quality and the environment. IAB as a primary supplier to industrial workplaces has responded accordingly.

In April of last year, it established a dedicated safety devices division. It enhanced its safety devices line-up of components and networks, and boosted its system solutions capabilities and safety-design consulting services.

"Together, Omron IAB and STI will create a global safety equipment supplier of safety, sensing, and control technologies, that satisfies customers' demands for not just labour productivity but also product quality, employee safety, and environmental friendliness." said Fumio Tateisi, IAB president, and executive vice president of Omron.

"By acquiring STI, we will be able to offer a wider range of cutting-edge safety products and consultancy services to our customers."