U.S. Unit of Kyocera to Buy Irvine Precision Drill Maker

The San Diego based-division of Kyocera Corp., one of the world’s largest producers of semiconductors, said Tuesday that it agreed to acquire privately held Tycom Corp. of Irvine for an undisclosed sum.

Tycom is a major manufacturer of precision drills used to make circuit boards for pagers, computers and cell phones. The 14-year-old company, which generated $90 million in sales last year, employs 1,145, including 400 at its Irvine headquarters.

Tycom’s management and employees are expected to be retained after the deal is completed around Feb. 28, said Katie Shaw, Tycom’s marketing manager.

The company’s large market share attracted Kyocera, which is seeking to broaden its base of cutting tools for heavy-duty metals.

“We aim to become one of the top three producers of all types of industrial cutting tools in the world,” said Rodney Lanthorne, president of Kyocera’s U.S. subsidiary, which is acquiring Tycom.

Kyocera’s stock closed Tuesday at $108.25, off $1.44 a share, on the New York Stock Exchange. The shares have lost about 43% of their value over the last year.

Tycom was launched by Tim Taylor and Scott Yardley with a $650,000 loan from family members and friends. Its sales totaled a mere $290,000 the first year.

Yardley is president and chief executive. He could not be reached for comment. Taylor departed several years ago.

“It was time for the owners to get their return on their investment,” Shaw said. She did not elaborate.

Kyocera has been on a buying binge, wrapping up a string of deals that is expected to raise revenue to $12 billion in the fiscal year ending March 31 from $7.9 billion the previous year. Telecommunications revenue accounts for about 80% of the total.

Over the last year, the conglomerate has purchased Mita Industrial Corp., a large manufacturer of printers, copiers and faxes, and the wireless handset division of Qualcomm Inc., now called Kyocera Wireless Corp.

Tycom’s growth in the high-tech world caught Kyocera’s attention.

“It’s a successful company that’s had years of double-digit revenue growth and has a good cost structure,” said Jay Scovie, a spokesman for Kyocera International Inc. in San Diego. “It doesn’t need to be turned around.”