Kanamoto makes two small rental acquisitions

30 June 2008

Kanamoto made two rental acquisitions in June. It has bought tunneling equipment specialist Toyo Industry and general rental company Kyokuto Lease.

In both cases it is acquiring all the stock of the two companies, valued, respectively, at Y31 million (€185000) and Y10 million (€60000).

Kanamoto said Tokyo-based Toyo Industry, which reported revenues of €6.8 million for the year to November 2007, was the largest rental company in Japan offering equipment used in shield tunneling operations.

The company acknowledged that the use of shield tunneling methods was declining in Japan, but said it believed it can "achieve significant results in the future both domestically and overseas because this technique will be necessary and indispensible for urban civil engineering works in developing countries, and because Kanamoto can take maximum advantage of Toyo Industry's knowledge and experience in combination with techniques such as ground improvement works in which Kanamoto excels."

Kanamoto said Toyo would continue to operate under its current organisation when the sale is complete in early July.

The acquisition of Kyokuto Lease Co Ltd, a €4.2 million revenue company based in Oyama City, will boost Kanamoto's operations in the prefectures of Tochigi, Miyagi, Fukushima and Yamagata.

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