Nippon: Gould May Sell Some Assets
Japan’s Nippon Mining Co., which has agreed to buy electronics group Gould Inc. for $1.1 billion, said Friday that after the buyout Gould will likely sell some assets, with the exception of its foil division.
In a filing with the Securities and Exchange Commission, Nippon Mining said it plans to continue Gould’s previously announced program to sell its defense systems businesses.
Nippon Mining told the SEC that its primary reason for acquiring Rolling Meadows, Ill.-based Gould was to gain control of its copper foil division. Copper foil is a key material used in printed circuit boards.
The proposed Gould purchase represents the fourth-largest acquisition of a U.S. company by a Japanese concern.
Gould’s operations consist of information systems, including computer systems for industrial and defense applications; measurement equipment, and materials and components, which include foil and fuses and other circuit protectors.
Nippon Mining, a metals, petroleum refining and petrochemicals concern, said it currently has no arrangements or commitments to sell Gould assets.
It did not place a price on Gould assets that may be sold after the buyout.
Nippon Mining said some operations might be sold if Gould is required to ensure that the Japanese company will not be able to influence Gould’s defense-related activities.
According to the SEC filing, members of Gould management on May 11 discussed with Nippon Mining a possible joint offer for Gould. Talks continued through July, when Gould management members said they would not participate in an offer to buy the company.
The current buyout agreement was negotiated between Aug. 10 and Aug. 30, after Nippon Mining received confidential information from Gould, Nippon Mining told the SEC.
Nippon Mining also said it expects to finance the $1.15-billion Gould acquisition with a loan from the Industrial Bank of Japan Ltd.