Kyocera Acquires Senco: Moving Into Cutting Tools Division
Senco Brands, an American manufacturer of fasteners and fastening tools since 1948, was recently acquired by Kyoto-based Kyocera Corporation for an undisclosed sum. Kyocera announced last week that it has acquired 100% ownership of the Cincinnati-based company. As a result of the acquisition, Senco will now operate as a part of the Kyocera Global Tool Cutting Division. Renamed Kyocera Senco Industrial Tools, Inc., the company continues to be headquartered in Cincinnati. They will retain their existing staff and management. Kyocera acquires Senco in a move that takes Senco out of private ownership.
Prior to the acquisition, Senco existed as one of Cincinnati’s larger private companies with an estimated revenue of over $166 million. They manufacture most of their products in their 500,000-square-foot manufacturing facility in Clermont County. Senco products have a market presence in more than 40 countries.
What Does Senco Have to Say About It?
“We expect this acquisition to strengthen our new product development capabilities, bolster our ability to provide innovative fastening solutions to a wider range of customers and enhance our global distribution network.”
-Ben Johansen, CEO of Senco Brands
Kyocera began in the industrial tools market in the 1970s. After a successful run of high-speed metal processing tools, the company ventured into manufacturing precision tools for electronics, medical, automotive, aerospace, and woodworking applications. In 2011, Kyocera acquired the Unimerco Group in Europe and added a fastening tool product line. Kyocera believes that their existing fastening tool product line will operate synergistically with Senco’s expertise in that particular market. With the acquisition, Kyocera projects sales of fasteners and fastening tools to increase to $361 million by March of 2021.
Kyocera Acquires Senco: What’s Next?
Now that Kyocera acquires Senco into their fold, the future is cautiously optimistic. The fact that Kyocera is leaving Senco’s staff and management in place is a vote of confidence that the brand in on the right track. We’d agree since Senco nailers are some of our favorites. And while Senco doesn’t bring out new tools and fasteners at the same rate as companies like Milwaukee and Makita, their innovation does tend to be significant.
It looks like Kyocera simply sees this as a brand that’s in position to take off – something evident from their forecast of an increase to more than $360 million in sales over the next 5 years. Whether that’s due to an increase in marketing, manufacturing, current product development, or a combination remains to be seen. All things considered, though, this looks like a positive move for both Kyocera and Senco. Just don’t expect to communicate between your Kyocera phone and your nailer anytime soon.