Kyocera Announces Merger Agreement With Tycom Corporation
SAN DIEGO, CA (January 9, 2001) -- Kyocera Corporation (NYSE: KYO) announced today that its wholly-owned U.S. headquarters, Kyocera International, Inc. (KII), has reached a definitive agreement to acquire privately-held Tycom Corporation. The acquisition will be effected through a merger of a subsidiary of KII into Tycom Corporation, subject to U.S. regulatory approval. Terms of the merger, which is expected to be consummated by February 28, 2001, were not disclosed.
Tycom Corporation is a premium producer of carbide cutting tools for the printed circuit board (PCB) industry, with the largest share of the North American market and the second largest market share globally. The company is both a manufacturer and a provider of engineering services.
"The Tycom team has shown leadership in their market, and we are pleased to welcome them into the Kyocera group," said KII President Rodney N. Lanthorne, a senior managing and representative director of Kyocera Corporation. "By combining our resources and energies, we are confident that we will solidify Tycom's leading position in North America while dramatically expanding our share in the high-growth markets of Japan and Asia. Together with our existing ceramic and cermet-based indexable inserts for the metalworking segment, we aim to become one of the top three producers of all types of industrial cutting tools worldwide."
The addition of Tycom will more strongly position Kyocera's cutting tools segment in the information and communications sector, where Kyocera products currently range from passive electronic components and microelectronic packages to copiers and cellular phones. The new business unit will operate separately from Kyocera's existing cutting tools business, which will continue to focus on such applications as machining and metal removal for the automotive and aerospace industries.
Tycom's present management, staff and market identity will be retained, Lanthorne stated, and the company will continue to provide its full line of products.
"Kyocera's longstanding reputation for excellence in the areas of people and products makes this an exciting opportunity for personal and professional growth for all Tycom associates," said Scott Yardley, President and CEO of Tycom Corporation. "The operational and cultural synergies between the two companies will further improve Tycom's ability to provide value to our customers."
Irvine, CA-based Tycom Corporation, founded in 1987, has successfully advanced the understanding and application of cutting tool technology through partnerships with leading PCB manufacturers worldwide. Tycom's focus on process engineering and designed experiments has resulted in the development of optimized cutting tool designs and the sustained improvement of its customers' process capabilities. The company has 17 manufacturing and resharpening operations throughout North America, Japan, China, Singapore and Malaysia.
San Diego, CA-based Kyocera International, Inc., founded in 1969, is the holding company for six wholly-owned Kyocera subsidiaries headquartered in North America.
Kyoto, Japan-based Kyocera Corporation was founded in 1959 as a producer of advanced ceramics. By combining these engineered materials with metals and plastics, and integrating them with other technologies, Kyocera has become a leading supplier of telecommunications equipment, semiconductor packages, electronic components, cutting tools, cameras, laser printers, copiers, solar energy systems and industrial ceramics. During the year ended March 31, 2000, Kyocera Corporation's consolidated net sales totaled 812 billion yen (US$7.9 billion) with net income of 50 billion yen (US$489 million). Kyocera has been recognized by IndustryWeek magazine as one of "The World's 100 Best-Managed Companies."
Manager of Corporate Communications
Kyocera International, Inc.
8611 Balboa Avenue
San Diego, CA 92123-1580
Tel: (858) 576-2674
Fax: (858) 492-1456
Marketing Manager, Tycom Corporation
Irvine, CA 92614
Tel: (949) 930-1727
Fax: (949) 930-0911