POSTED: 31st October 2014
Daifuku investment in BCS accelerates global growth
Japan’s Daifuku Co., Ltd. is to take a majority stake in one of New Zealand’s fastest-growing companies, New Zealand-headquartered BCS Group; in a move described by BCS CEO Patrick Teo as opening doors for the company’s plans for faster global expansion and access to new markets.
Daifuku plans to
acquire an 80% share of BCS, encouraged by the revolutionary IP
developed by BCS's development lab in Auckland and the company's
Daifuku is the world's
leading materials handling company with an annual turnover in
excess of $US2.3 billion.
Since entering the
airport baggage handling industry, Daifuku has continued to invest
in product R&D and systems and solution design, along with
major investments in customer demonstration centres in Japan, UK
Mr Teo said BCS had
fielded numerous approaches over the years from companies wanting
to join forces. The company had also worked with Daifuku for some
time, and this further association with Daifuku now opens up
unprecedented access to world markets to continue its globalisation
of its solutions including its revolutionary self-service bag drop
"The reality is that
we will increase our portfolio of innovative solutions and products
that will benefit not only our customers in the airport sector but
also in the high growth courier sortation market. We will also be
investing more heavily into R&D and that has got to be good
both from an employment perspective and our on-going need for more
staff, as well as creating more high value jobs," he said.
"We see it being
mutually beneficial. BCS adds to Daifuku's global presence in
baggage handling, and we are big in countries where they are
not. Through Daifuku Webb, a US subsidiary of Daifuku, they
have a strong presence in the US, and through Daifuku Logan, a UK
subsidiary, Europe is covered - both geographies where we do not
have a footprint - whilst we have concentrated on taking ownership
of the Asia-Pacific, Middle East and African airport markets."
"Daifuku also operates
very strongly at a global lead level in a number of sectors, such
as warehousing, distribution and motor vehicle plants, all of which
will strongly complement the courier sortation market where we are
strong, and we see the potential for BCS technology to expand into
Mr Teo said the
acquisition, scheduled to complete at the end of December, allows
BCS to continue its growth path at the same rate, if not
Growth had been
inhibited only by an inability to gain market reach
rapidly, not a lack of funding, and Daifuku offered the right
solution for the company at its current stage of growth, he
It would be 'business
as usual', he said, with no reduction in staff numbers or
locations. He pointed to the increased investment in R&D
as being of significant value not only in building a stronger IT
sector in New Zealand, but in also offering global career paths for
Masaki Hojo, President
and CEO of Daifuku said the company had previous experience in
investing in New Zealand, when it took a stake in the early 1990s
via Auckland UniServices Ltd into the inductive power transfer
technology developed at the University of Auckland. Daifuku
invested heavily in their research, creating the world's first
fully controllable IPT system.
"We see significant
potential in BCS and its flagship products and solutions, and we
are very excited about investing in more R&D from New
Zealand. New Zealand has a reputation for very good, smart
and robust innovation and we regard this as an area we want to
invest in and grow."
All BCS current
management and staff structures will remain, and Daifuku will take
a minority position of up to two directors, on the board of six
chaired by Jim Doyle.
Mr Teo said there
would be no change to the 400+ staff employed within BCS across NZ,
Australia, Malaysia, Singapore, USA and Mexico.
"Our focus remains the
same; creating smarter technology faster, and we are well down the
track in discussions as to how this can be rolled out not only in
Daifuku's baggage handling but right across the Daifuku Group.
Patrick Teo, BCS - +64
21 544 959. www.bcsgroup.biz
Daifuku Co., Ltd. is
the world's top manufacturer and supplier of automated material
handling systems and software to the automotive, airport,
semiconductor and LCD equipment, and general industry markets.
Daifuku, listed on the Tokyo Stock Exchange, is headquartered in
Osaka, Japan, with sales and service offices throughout the world.
The Company was founded in 1937.
BCS is a synergistic
group of technology companies with its headquarters in Auckland,
New Zealand. BCS core business operates in the aviation sector with
complimentary business in the adjacent verticals of logistics and
industrial. Founded in 1993, its expertise lies in hardware
solutions, automation controls and smart in-house software
solutions, which has made BCS supplier of choice to airports,
airlines, freight and industrial customers across Australia and
around the globe.
SHOW ALL PRESS RELEASES, AIRLINES AND AIRPORTS, LOGISTICS, PROJECTS