JUKI Enters into Business Alliance with AIMECHATECH

JUKI Corporation has entered into a capital and business alliance agreement with AIMECHATEC, Ltd. As a result of the Capital and Business Alliance, JUKI also agreed to a share transfer agreement with AIMECHATEC’s largest shareholders, Polaris Private Equity Fund III, L.P. and Tiara CG Private Equity Fund 2013, L.P. (Seller). Under the share transfer agreement, JUKI will receive a transfer of the common shares of AIMECHATEC held by the Seller through an off-market, negotiated transaction.

The resolution was reached at a JUKI board meeting held on Sept. 26, 2022.

The alliance aims to establish and maintain a strong cooperative relationship in a wide range of operational areas

Reasons for the Capital and Business Alliance

Since its foundation in 1938, JUKI has been committed to creating new value while continuing to create and evolve its technologies. It has put “Monodzukuri (manufacturing)” at the core of its business operations. Now, JUKI is vigorously pursuing growth strategy and business reforms with a long-term vision of becoming a global and innovative “manufacturing and value-creation” company that survives the 21st century. As a company that delivers good impressions and peace of mind, JUKI continues to be a solution partner selected by customers in countries and regions around the world. Also, it is working to become a company that is trusted and needed by society by implementing SDGs management.

AIMECHATEC develops, manufactures, sells, and provides after-sales services for flat panel display (FPD) and semiconductor package manufacturing equipment under the corporate philosophy, “Create the Next by Advanced and Innovative Technologies.” AIMECHATEC aims to become a global company that is trusted and supported by customers. Moreover, it is committed to management that contributes to society by making people’s lives more convenient and affluent. These principles are based on its basic policy of contributing to technological innovation in the display field through constant technological development, developing new business using core technologies, and improving customer satisfaction through meticulous LCS (Life Cycle Support) activities.

JUKI and AIMECHATEC have long been engaged in the contracted production of parts and equipment. Also, they have forged a trusting relationship as companies engaged in the same manufacturing activities through their contracted transactions. On the premise that JUKI will maintain its holding of the AIMECHATEC’s shares it acquires, they have decided to enter into the Capital and Business Alliance. Specifically, they aim to establish and maintain a strong cooperative relationship in a wide range of operational areas. They also target to expand the growth of their respective businesses.

Details of the Business Alliance

In the future, JUKI and AIMECHATEC will discuss the specific scope and terms and conditions of the subcontracting between them. They have set the following items main subjects of the business alliance.

(i) Reinforcement and expansion of the current contracted operations

Expanding the scope of contracted operations and reinforcing the proposals for improved performance and cost reductions

(ii) Expansion of collaborative functions

Expanding the scope of collaboration in the contracted development, joint procurement, and mutual use of sales networks

(iii) Collaboration through the complementation of each other’s technological capabilities

Strengthening products and businesses through mutual support for the technological capabilities of the two companies

(iv) Collaboration through the synergization of technological capabilities

Creating new fields of business by sharing information on technological areas and industries

They will also set up a business alliance study team to mutually discuss the matters covered by the business alliance. In particular, it will deliberate on specific details of the alliance itself, among other matters. Moreover, the team will realize the benefits gained from the business alliance by promoting it.

Details of the Capital Alliance

JUKI entered into the share transfer agreement with the Seller on Sept. 26, 2022 to build and strengthen a long-term alliance for the promotion of the above-mentioned business activities. Under the agreement, JUKI will acquire 1,101,500 common shares of AIMECHATEC (or 19.56% of the total number of shares issued as of June 30, 2022) on Sept. 30, 2022.

JUKI and AIMECHATEC have also agreed that a proposal to appoint one director candidate nominated by JUKI as a director of AIMECHATEC will be put to a vote at the first ordinary shareholders’ meeting to be held after Sept. 30, 2022.