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Daifuku intends to acquire Logan Teleflex

Daifuku Co., parent company of Jervis B. Webb, has reached a decision to purchase all shares of three companies which provide airport baggage handling systems and services.
January 31, 2011

Daifuku Co., parent company of Jervis B. Webb, has reached a decision to purchase all shares of three companies which provide airport baggage handling systems and services, including Logan Teleflex (UK) Ltd. (headquartered in the United Kingdom), Logan Teleflex (France) S.A. (headquartered in France) and Logan Teleflex, Inc. (headquartered in the U.S.A.).  Those three companies (“Logan”) will be wholly owned subsidiaries within the Daifuku Group.

In April 2010, Daifuku announced a three-year business plan called “Material Handling and Beyond,” where it expressed a commitment to position the airport baggage handling business as one of its core businesses.

Jervis B. Webb Company, a U.S.-based wholly owned subsidiary of Daifuku, provides airport baggage handling systems primarily in North America. In the three-year plan, Daifuku outlines its basic strategy for the airport baggage handling systems: to advance into growth markets outside North America such as China, India, and the Middle East; to upgrade a selection of products for new markets; and to develop a global framework for sales and production to meet demand worldwide. Logan was highlighted as a company that would be the best partner of Webb in terms of sales territory, customer base, and products. Daifuku has negotiated with the GDF SUEZ Group, Logan’s parent company, for transfer of Logan’s shares to expand and enhance Daifuku’s baggage handling business in an efficient and speedy manner.

Logan provides advanced specialized products such as tilt tray sorters and the Intelligent Destination Coded Vehicle (IDCV) and has more than 400 installations in 80 countries around the globe, mainly in Europe. Logan’s tilt tray sorters are utilized for connecting flight baggage sortation at hub airports, which are essential to bolster the baggage handling business and develop new markets in emerging countries. In addition, Logan established a joint venture in China, Kunming Logan KSEC Airport Logistics System Company Ltd., which has received orders for large-scale projects. Daifuku expects to establish a toehold to increase airport baggage handling systems business in the Chinese market. Taking advantage of synergies in products and sales areas, Daifuku will accelerate the growth of its airport baggage handling business at a global level.

Daifuku will acquire 100% of shares of Logan Teleflex (UK) Ltd. and Logan Teleflex (France) S.A. respectively and Webb will acquire 100% of shares of Logan Teleflex, Inc.

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