Japanese high-tech glassmaker Hoya Corp., set to take over Pentax Corp., said it would consider new acquisitions or alliances in the medical equipment business to increase competitivity against market…
Japanese high-tech glassmaker Hoya Corp., set to take over Pentax Corp., said it would consider new acquisitions or alliances in the medical equipment business to increase competitivity against market leader Olympus. Hoya said it would launch a USD 864 million tender offer bid for Pentax Corp. in early June 2007 to gain access to lucrative markets for medical endoscopes and single-lens reflex (SLR) cameras. “The benchmark in the endoscope industry is Olympus, and Pentax“s business lags behind”, said Hoya Chief Executive Hiroshi Suzuki during an interview with Reuters on Monday. “We don“t expect to win competing solely on Olympus“s main turf, so we“re interested in the surrounding businesses such as accessories”. Pentax is the No. 3 player in the profitable endoscope market, but its market share and profitability put it behind larger rival Olympus, which controls 70% of the market, and Fujifilm Holdings. Hoya“s Suzuki also said he hopes to raise the operating profit margin of Pentax“s medical business to about 30-40% in the medium-term, excluding research and development costs, up from 8% in the year ended March 2007. Investors and analysts have been hopeful that Pentax could head for a successful turnaround under Hoya. Not only could Hoya spend some of its USD 980 million cash on Pentax technology. Mr. Suzuki“s fast management style and his commitment to open corporate governance may also help Pentax accelerate decision-making, cut costs and grab market share, analysts said. Although Tokyo-based Pentax has a strong camera brand, thanks to its past success in film cameras, its competitiveness in digital devices have trailed rivals such as Canon and Nikon.