Kobe Steel, Ltd., Tokyo, Japan, has announced its acquisition of Swedish-based Quintus Technologies AB from private shareholders led by US private equity firm Milestone Partners on April 5, 2017. The total purchase price was reported at $115 million. Quintus is now a wholly owned subsidiary of Kobe Steel.
Quintus manufacturers a range of hot and cold isostatic presses (HIP/CIP) and has achieved a strong presence in Europe, USA and China. Its isostatic presses are used in the manufacture of high-performance products, particularly in the aerospace sector where they are used for aircraft parts, power generation turbine blades and semiconductor materials.
Under its medium-term management plan, Kobe Steel’s Machinery Business aims to increase the profitability of its Industrial Machinery Division, including the IP business. According to the company, Kobe Steel’s IP sector is a relatively high-profit business within the Industrial Machinery Division, but IP sales in Japan and the Asian market have remained at about 3 billion yen a year, and market expansion has been an issue.
The acquisition of Quintus is expected to enable Kobe to expand its line-up of IP products and enter new growth markets. Kobe has also expressed that it hopes to benefit from the interchange of product menus and from the synergy of manufacturing efficiency and cost reductions through the joint procurement of parts.