TOKYO, February 21, 2017—Canon Inc. (“Canon”; Headquarters: Tokyo, Japan; Chairman and CEO: Fujio Mitarai) announced today that it has concluded a share transfer agreement to acquire the shares of Toshiba Medical Finance Co., Ltd. (“TMF”; Headquarters: Tokyo, Japan; President and CEO: Shohei Seki) from Toshiba Corporation (“Toshiba”; Headquarters: Tokyo, Japan; President and CEO Satoshi Tsunakawa) and make TMF a subsidiary.
Under Phase V of its Excellent Global Corporation Plan, a five-year initiative launched in 2016, Canon aims to embrace the challenge of new growth through a grand strategic transformation. With regard to reinforcing and expanding new businesses in particular, which represents one of the important strategies to be carried out during this phase, Canon intends to cultivate its health care business within the safety and security sector as a next-generation pillar of growth.
As part of this initiative, Canon acquired the shares of Toshiba Medical Systems Corporation (“TMSC”) on December 19, 2016 and made TMSC a subsidiary. TMSC holds 35% of the shares of TMF, a company that is involved in the leasing of medical and other equipment. By acquiring the remaining 65% and making TMF a subsidiary, Canon plans to accelerate growth of its medical equipment business, building a collaborative organization from a TMSC and TMF marketing perspective.
As for the impact this will have on the company's performance, in cases where the company needs to revise its projection it will make prompt disclosure. The company will also make prompt disclosure when something that needs to be made public occurs.
1) Company name: Toshiba Medical Finance Co., Ltd.
2) Representative: Shohei Seki, President and CEO
3) Location: 14-10 Ningyo-cho 2-chome, Nihombashi, Chuo-ku, Tokyo
4) Date of establishment: September 1, 1970
5) Scope of business: Lease and credit sales of medical and other equipment
6) Operating Results for the fiscal year ending March 2016
Net sales: 15,259 million yen
Operating profit: 456 million yen
Net income: 287 million yen
No. of shares before acquisition: 84,000 shares* (ratio of ownership voting rights: 35%)
No. of shares to be acquired: 156,000 shares
No. of shares after acquisition: 240,000 shares (ratio of ownership voting rights: 100%)
Acquisition price: 3.14 billion yen
* Held by TMSC
Date of agreement signing: February 21, 2017
Expected date of stock acquisition: March 31, 2017