OREANDA-NEWS. Hitachi, Ltd. and The Longreach Group today announced that the two companies have concluded a share transfer agreement after agreeing that Hitachi will sell all the shares it owns of Hitachi Via Mechanics,Ltd ("Hitachi Via Mechanics") to The Longreach Group. An overview of the agreement is as follows.

Hitachi Via Mechanics is engaged in manufacturing, sales and service businesses for Printed Wiring Board (PWB) processing machines and peripheral equipment that support cutting-edge electronic equipment industries. The company's mainstay products, Printed Wiring Board Drilling Machines and Laser Drilling Machines, have earned wide market acceptance and garnered considerable trust, as highlighted by high market shares around the world, not just in Japan. In recent years, however, the company's business environment has become increasingly competitive as demand patterns have changed since the global financial crisis and companies from emerging nations have risen to prominence.

Hitachi began providing support to Hitachi Via Mechanics for management reforms and has explored various initiatives. However, in order to optimize the business performance and expand the operations of Hitachi Via Mechanics, Hitachi ultimately came to the conclusion that the best course of action was for Hitachi Via Mechanics to improve its earnings power and implement far-reaching management reforms under The Longreach Group, which has extensive experience in the industrial technology field. The Longreach Group will reinforce Hitachi Via Mechanics' financial and business foundation and management resources as well as provide global business strategy know-how and other benefits.

The Longreach Group will further develop the Hitachi Via Mechanics' global customer base, which has been built upon globally competitive technological capabilities and a track record of developing highly reliable products to quicken the pace of business development in emerging markets, especially in Asia. In this way, The Longreach Group is firmly convinced that Hitachi Via Mechanics can achieve sustainable growth as the world's leading Printed Wiring Board processing machine, with a sustainable, leading market position even in a changing business environment. Looking ahead, as a new partner, The Longreach Group will provide the necessary management resources such as capital, a global network and strategy formation and execution know-how based on a wealth of past business support experience to assist Hitachi Via Mechanics broadly and with full commitment, so that it can realize further growth and maximize its long term potential.