Azbil Transfers Spanish Group Company Azbil Telstar to Syntegon of Germany

Azbil Corporation (Headquarters: Marunouchi 2-7-3, Chiyoda-ku, Tokyo; President: Kiyohiro Yamamoto) announces that it has reached an agreement to transfer all the equity interests in its European subsidiary Azbil Telstar S.L.U. (Headquarters: Terrasa, Spain; CEO: Jordi Puig Lavernia) to a wholly-owned subsidiary of Syntegon Technology GmbH (Headquarters: Waiblingen, Germany; CEO: Torsten Türling), and concluded a contract on June 6, 2024 (Central European Time).

Based on its philosophy of “human-centered automation,” the azbil Group is developing its Building Automation, Advanced Automation, and Life Automation businesses in Japan and overseas. Currently, the azbil Group is optimizing its business portfolio with the aim of realizing sustainable growth and increasing shareholder value in order to achieve its long-term targets for 2030.

In the Life Science Engineering field of the Life Automation business, Azbil Telstar is a global provider of freeze dryers, sterilizers, clean-room facilities, and related equipment for pharmaceutical companies and research laboratories, covering everything from development, engineering, and installation to after-sales service. Since it became our subsidiary through acquisition in 2013, we have developed a growth strategy to expand its business. Recently, amidst the reorganization taking place in this global industry, the azbil Group has been implementing strategies aimed at further enhancing future business competitiveness and profitability of Azbil Telstar—such as strengthening product competitiveness through group-wide R&D synergy. At the same time, however, from the perspective of restructuring the azbil Group’s business portfolio to improve capital efficiency, as targeted in the Group’s medium-term plan, we have also been reconsidering what sort of presence we should have in the future.

As a result, it was determined that, in order to fully leverage the technology and products of Azbil Telstar and realize its sustainable growth, the best option was to transfer our equity interests in Azbil Telstar to Syntegon, a global packaging solutions company, with the contractual transferee being Falcon Acquisition, S.L.U., a wholly-owned subsidiary of Syntegon. This decision led to the conclusion of the aforementioned contract. In consideration of the terms of the agreement reached with Syntegon and concomitant confidentiality obligations, the details of this transfer will be disclosed at a suitable time in the future.

While continuing to promote structural reforms to make Life Automation a growth business, the azbil Group will accelerate reforms to achieve expansion and growth in all its businesses, including Building Automation and Advanced Automation. Making use of ROIC as a key indicator as it aims to invest management resources more efficiently, management is keenly aware of the cost of capital. We will not only ensure the appropriate allocation to strategic growth fields of management resources—such as product competitiveness, technological development, and human capital—but also restructure the Group’s business portfolio, for growth and improved profitability, by steadily making necessary investments, such as actively promoting collaboration with external partners. We thus aim to strengthen our competitiveness, in Japan and overseas, and enhance our enterprise value.

Guided by the Group philosophy of “human-centered automation,” the azbil Group will continue to make contributions leading “in series” to the achievement of a sustainable society and aim to achieve its own sustainable growth.

Company transferred
(1) Name:        Azbil Telstar S.L.U.
(2) Location:       Terrasa, Spain
(3) Principal Businesses: Development, manufacture, and sales of equipment for the pharmaceutical,
            laboratory and hospital markets
            • Lyophilization equipment
             (for freeze-drying and pulverizing in the preparation of pharmaceuticals)
            • Barrier systems
             (sterilization and containment equipment to prevent contamination of people
              and products)

(1) Name:       Falcon Acquisition, S.L.U.
(2) Location:      Madrid, Spain
(3) Other:       Falcon Acquisition, S.L.U. is a wholly-owned subsidiary of Syntegon*.
            * Overview of Syntegon
            • A global player in providing products such as packaging machinery, process
             technology, labeling and inspection equipment for the food, pharmaceutical
             and cosmetic industries.
            • Founded in 1967 as Bosch Packaging Technology of Bosch
            • Bosch spun off its packaging technology division as Syntegon Technology
             GmbH in 2020.

* Posted information is accurate as of the date of announcement.