TOKYO, Jan. 28 /PRNewswire/ -- Omron Corporation, Japan's leading maker of
control components, today announced a decision to separate the business
planning and marketing functions of its healthcare business and integrate
these in a new company to be formed with wholly-owned development subsidiary
Omron Institute of Life Science Co., Ltd. (OLS).
The new company will be positioned as a specialist manufacturer of medical
equipment and provider of associated healthcare services and will initially be
a wholly owned Omron Corporation subsidiary. Inauguration is tentatively set
for July 1, 2003.
"Business opportunities in the medical-equipment and healthcare-service
sectors are rapidly expanding. We have decided that to take full advantage of
this growth, our healthcare business must be managed as an independent
specialist manufacturer of medical equipment and provider of associated
healthcare services," Omron Corporation CEO Yoshio Tateisi said.
Omron's healthcare business has established the Omron name as a leading
world brand in the personal health equipment industry, as typified by Omron's
65% global market share for home-use blood-pressure monitors. Yet established
business lines such as these monitors and thermometers face challenging
medium-term prospects, given the slowing growth in the company's existing
Meanwhile, rising medical costs are prompting healthcare providers
attempting to tackle those spiraling costs to increasingly focus on early
detection and treatment of lifestyle diseases (especially by promoting
positive lifestyle changes). These developments are creating new business
opportunities in the medical-equipment and healthcare-service sectors.
Against this backdrop, Omron has identified lifestyle disease monitoring
as the new company's core growth domain. The company will focus resources on
developing personal products in the medical healthcare-equipment and lifestyle
disease-monitoring markets while working to enhance its ability to generate
To this end, Omron has concluded that its healthcare business should be
conducted as a financially and managerially independent specialist
manufacturer of medical equipment and provider of associated healthcare
services. This decision culminated in a proposal to split its healthcare
business off and integrate it with the development functions of OLS.
Full details of the reorganisation and business integration will be
disclosed after the separation plan has been approved at a board meeting
scheduled in early May. Healthcare Business Company and Omron Institute of
Life Science employees will be transferred to the new company.
"The new company will take steps to make itself more agile and maximise
its business potential. By building a management infrastructure incorporating
human resources and IT systems, creating a challenge-oriented corporate
culture and fostering efficient decision-making procedures, our new subsidiary
will be able to optimise its organisation and business processes," Omron CEO
"This reorganisation of Omron's healthcare businesses should have no
impact on our parent or consolidated earnings for the current fiscal year
ending March 31 next," he stressed.
Board meeting to approve split-off reorganisation plan: Early May
Authorization of split-off reorganization plan: Early May 2003 (scheduled)
Date of split-off: July 1, 2003 (scheduled)
Registration of split-off: July 1, 2003 (scheduled)
Separation will take the form of a split-off of existing corporate units
and the joint formation of a new stock company to assume their functions and
operations under the provisions of the new corporate divestiture rules
provided by the 2000 revision of Japan's Commercial Code. The new company
will be a wholly owned subsidiary of Omron Corporation and will integrate the
operations of its current healthcare businesses (business planning and
marketing) and those of the Omron Institute of Life Science Co., Ltd. (OLS),
currently a wholly owned Omron development subsidiary.
Overseas marketing locations
Overseas marketing locations will be gradually incorporated into the new
company's operations under a program scheduled for completion during the
period spanning fiscal years 2003 through 2005.
The press release separately issued by Omron Corporation PR Office is also
available at http://www.omron.com/news/n_280103.html
Omron Corporation, headquartered in Kyoto, is Japan's largest producer of
control components and systems. Established in May 1948 and headed by CEO
Yoshio Tateisi, Omron employs some 25,000 people worldwide and for the year
ended March 2002 posted consolidated sales of 534 billion yen
Omron Healthcare Company is a wholly owned subsidiary of Omron Corp and is
based in Tokyo. A specialist firm in healthcare equipment, including digital
blood pressure monitors, digital thermometers, body fat meters and nebulisers,
Omron Healthcare employs about 2,386 staff worldwide and recorded sales to
March 2002 of 40.6 billion yen ($305 million). Its president is Keiichiro
SOURCE Omron Corporation Healthcare Company