4 September 2012
BDA advises Totoku Electric on Joint Venture with Belton Technology Group
Signed joint venture agreement with Belton Technology Group
BDA advises Totoku Electric on joint venture with Belton Technology Group in Hard Disk Drive components
Business Development Asia LLC (“BDA”) is pleased to announce that its client, Totoku Electric Co., Ltd. (“Totoku”) has executed a definitive transaction agreement with Hong Kong-based Belton Technology Group (“Belton”) to form a joint venture, BELTONTOTOKU Technology Limited, which will incorporate Totoku’s Hard Disk Drive carriage assembly business in Japan and the Philippines. Upon closing of the transaction Belton will own 61% in the joint venture, and Totoku will own 39%. In conjunction with the joint venture, Totoku also plans to sell certain assets from its HDD carriage assembly operations in Japan and Thailand to Belton. BDA acted as the exclusive financial advisor to Totoku on this transaction.
The transaction is expected to close on November 1, 2012, subject to conditions of the definitive agreements.
About Totoku Electric Co., Ltd.
Totoku, an affiliate of Furukawa Electric Co., Ltd., was established in 1940. It is listed on the First Section of the Tokyo Stock Exchange and is active in the manufacture and sales of electric wires and electronic devices. For the financial year ending March 2012, Totoku generated revenues of JPY26.9bn (US$335m). For further information, please see www.totoku.com.
About Belton Technology Group
Belton Technology Group is a leader in Hard Disk Drive carriage assembly manufacturing, and a full turnkey contract manufacturer of precision machined components, precision metal stamping components, plastic injection molded parts, magnetic coil assemblies, flexible printed circuit boards and SMT flip chip assemblies. For the latest fiscal year, the Group generated consolidated revenues of US$800m. For further information, please see www.beltontechnology.com.
Business Development Asia LLC (“BDA”) is a leader in cross-border investment banking. BDA advises on M&A, capital raising, and restructuring. BDA has been consistently owned and managed by the same team since 1996, and has built a track record of providing independent advice to blue-chip corporate and financial sponsor clients from North America, Europe and Asia. BDA was named Investment Banking Firm of the Year by M&A Advisor in December 2010. BDA is headquartered in New York with offices in London, Beijing, Shanghai, Hong Kong, Mumbai, Bahrain, Seoul and Tokyo. For further information, please see www.bdapartners.com.
For more information regarding this transaction, please contact Jeff Acton in Tokyo at (81) 3 3433 5803 or Paul DiGiacomo in Hong Kong at (852) 2537 9565.
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