Maruyama Mfg. Co., Inc.
Notice regarding the revision of OEM contracts with major OEM clients and recognizing special profit from the receipt of a lump-sum payment as consideration for the contract revisions
Announcement of contract revisions with a major OEM supplier and receipt of a lump-sum payment of 30 million USD as consideration. Earnings guidance and dividend outlook will be disclosed in a separate document. Going forward, the relationship with the supplier will be treated as important to strengthen the business foundation and maintain appropriate rights and obligations management.
Key Figures
- Lump-sum payment: 30 百万米ドル
- Receipt timing: at the completion of the supplier's share transfer procedures
- Share transfer recipient: Franklin Electric Co., Inc. (NASDAQ-listed)
AI要約
Overview of the contract revision
We implemented a contract revision with a major OEM supplier in the industrial machinery segment, and agreed to the contract review. This revision is premised on continuing the business relationship, and the supplier will remain an important partner for our group even after the share transfer. We will continue to strengthen production and sales capabilities after the contract revision. The recipient of the share transfer is Franklin Electric Co., Inc., a U.S. NASDAQ-listed company, with expected synergies.
Overview of lump-sum payment receipt and accounting treatment
We received 30 million USD as consideration. The receipt timing is upon completion of the supplier's share transfer procedures. The accounting treatment is planned to be recorded as special profit (under discussion with the auditing firm). We will continue to properly manage rights and obligations.
Maruyama Manufacturing Co., Ltd.
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