On December 31, 2024, Taiwan ShinMaywa Industries (hereafter "Taiwan ShinMaywa")—a consolidated subsidiary of ShinMaywa Industries, Ltd. (Securities Code: 7224, hereafter "ShinMaywa Group")—acquired 60% of the shares in Top Quality Machinery Co., Ltd. (hereafter "TQM"), a Taiwanese manufacturer of mechanical parking systems. With this acquisition, ShinMaywa Group aims to enter the underground parking facility business in the Taiwanese market, with plans to expand further into Southeast Asia.
Purpose of M&A
ShinMaywa Group’s long-term business plan, "SG-Vision 2030" focuses on accelerating its overseas expansion as a key strategy. As part of this, the company has decided to expand its product lineup by adding "underground parking equipment," which is in high demand in Southeast Asia, including Taiwan, in addition to its main products such as "elevator-type parking systems" and "two-level and multi-level parking systems."
TQM is a leading company in the Taiwanese market, holding a 20% share of the underground parking equipment market. The company offers a wide range of products and also operates maintenance and refurbishment services. By collaborating with TQM, ShinMaywa Group aims to establish a solid foothold in the underground parking facility market and expand its parking system business in Taiwan and Southeast Asia. Taiwan ShinMaywa's long-term strategy includes the eventual acquisition of all shares in TQM to contribute to the enhancement of urban infrastructure.
With this M&A, ShinMaywa Group is set to expand its parking facility business in Taiwan and Southeast Asia, targeting future growth.
Acquisition Terms
The specific financial details and terms of the share acquisition have not been disclosed. However, after acquiring 10% TQM's shares in 2021, Taiwan ShinMaywa has now increased its stake to 60%, becoming the major shareholder of TQM and increasing its involvement in the company's management.
Schedule
2021: Taiwan ShinMaywa acquires 10% of TQM’s shares
December 31, 2024: Taiwan ShinMaywa acquires 60% of TQM’s shares
