David Savastano, Editor01.28.15
When a large corporation acquires a successful smaller manufacturer, the hope is that the two companies combined can be stronger together. To succeed, the companies have to have leadership in place that is committed to work together, and the willingness to utilize their areas of expertise to grow the business.
After one year, the combination of Nissha Printing Co., Ltd. and Si-Cal Technologies has proved to be a success. The two companies are working closely to develop new products and reach customers, bringing their respective strengths to the collaboration.
“It makes sense for a small company to be connected with a large company,” said Jaye Tyler, president and CEO of Si-Cal Technologies Inc., A Nissha Company.
Headquartered in Westborough, MA, Si-Cal Technologies Inc., A Nissha Company has developed two core markets - heat transfer decals and functional printed electronics (PE) components, primarily in the medical field.
Nissha, whose headquarters are in Kyoto, Japan, has three main business units: touch screens using printed electronics technology; industrial materials, such as in mold decoration (IMD) and printed films for end uses as automotive and consumer electronics devices; and information and communication, utilizing printing goods and services for marketing support, including digital medias such as SNS.
Nissha’s roots go back to 1929, originally as a high-end book publisher, and the company branched out into the U.S. more than 20 years ago when it opened a sales office in San Francisco. The company acquired Eimo Technologies, Inc., an in mold specialist, in Michigan in 2008, and wanted to bring in new manufacturing and technological capabilities.
This led to Nissha officials contacting Tyler, then president and CEO of Si-Cal. The timing was ideal, as Si-Cal was growing, and Tyler needed to decide whether to bring in the new printing lines and other equipment needed to get to the next level.
“Nissha contacted us in July 2013,” said Tyler, who now is president and CEO of Si-Cal Technologies Inc., A Nissha Company. “I had been approached before but it never made sense,” Tyler said. “I wasn’t really thinking about it, but Si-Cal was at an inflection point, as there was more demand for equipment.”
Nissha executives came out to visit with Tyler, and the two parties discussed the potential opportunities and synergies.
“We talked about what we are doing, and they spoke about Nissha and its interest in the PE market and manufacturing and their interest in mergers and acquisitions,” Tyler said. “They wanted to see if there was a fit between our companies. Their leaders met with me to better understand our company, our goals and our direction, and we looked at synergies. I then met with Nissha’s leaders from Japan. It was a really nice process.”
To bring out the best of the partnership and find ways to enhance both companies, Nissha brought in pipelines by human resources first to look at potential areas of synergies. Kazunori Oki joined Si-Cal as sales manager at Nissha USA, and Takanori Yoshida is principal engineer at Nissha USA.
"We are bringing Nissha resources to Si-Cal, and bringing Si-Cal's back to Nissha as a liaison of companies,” Oki said.
Oki noted that having manufacturing capabilities in the U.S. is a key to Nissha’s operations.
“We see synergies with Si-Cal,” Oki said. “Nissha produces heat transfer products in Japan, mostly through gravure printing, while Si-Cal uses roll-to-roll screen printing.
“By working with Si-Cal, Nissha is getting involved with a U.S.-based local manufacturer of medical devices, such as the EKG glove and esophageal tubes,” Oki added. “We are very interested in getting involved in this area.”
The collaboration has indeed proven to be successful. For example, Oki noted that Nissha’s R&D team has found new opportunities for PE products.
“Nissha has a huge corporate R&D team, and we are now working on the medical area, such as POCT and wearables,” Oki said. “Nissha has brought team leaders here and we are doing feasibility studies and prototypes for this market. Si-Cal has strong expertise and we have capabilities to support them.”
“It’s been 12 months since kickoff, and our relationship is a two-way street,” Tyler added. “Our sales are going to more than double this year, and we have a very large pipeline right behind these new projects. We share developed and developing technologies with one another. Nissha brought in new equipment and people, and we have the backing and ability to access resources, which is significant for us. We have a new manufacturing line on order with delivery scheduled for early summer. It will be our largest line.”
For Tyler, the personal touch of Nissha’s leadership team has been the most surprising aspect of the partnership.
“What has really impressed me is that Nissha is a very large organization with huge amounts of resources to accelerate more than $1 billion in sales as a publically traded company, and the access we have had with their senior people has really been remarkable and valuable, especially on the PE side,” Tyler concluded.
After one year, the combination of Nissha Printing Co., Ltd. and Si-Cal Technologies has proved to be a success. The two companies are working closely to develop new products and reach customers, bringing their respective strengths to the collaboration.
“It makes sense for a small company to be connected with a large company,” said Jaye Tyler, president and CEO of Si-Cal Technologies Inc., A Nissha Company.
Headquartered in Westborough, MA, Si-Cal Technologies Inc., A Nissha Company has developed two core markets - heat transfer decals and functional printed electronics (PE) components, primarily in the medical field.
Nissha, whose headquarters are in Kyoto, Japan, has three main business units: touch screens using printed electronics technology; industrial materials, such as in mold decoration (IMD) and printed films for end uses as automotive and consumer electronics devices; and information and communication, utilizing printing goods and services for marketing support, including digital medias such as SNS.
Nissha’s roots go back to 1929, originally as a high-end book publisher, and the company branched out into the U.S. more than 20 years ago when it opened a sales office in San Francisco. The company acquired Eimo Technologies, Inc., an in mold specialist, in Michigan in 2008, and wanted to bring in new manufacturing and technological capabilities.
This led to Nissha officials contacting Tyler, then president and CEO of Si-Cal. The timing was ideal, as Si-Cal was growing, and Tyler needed to decide whether to bring in the new printing lines and other equipment needed to get to the next level.
“Nissha contacted us in July 2013,” said Tyler, who now is president and CEO of Si-Cal Technologies Inc., A Nissha Company. “I had been approached before but it never made sense,” Tyler said. “I wasn’t really thinking about it, but Si-Cal was at an inflection point, as there was more demand for equipment.”
Nissha executives came out to visit with Tyler, and the two parties discussed the potential opportunities and synergies.
“We talked about what we are doing, and they spoke about Nissha and its interest in the PE market and manufacturing and their interest in mergers and acquisitions,” Tyler said. “They wanted to see if there was a fit between our companies. Their leaders met with me to better understand our company, our goals and our direction, and we looked at synergies. I then met with Nissha’s leaders from Japan. It was a really nice process.”
To bring out the best of the partnership and find ways to enhance both companies, Nissha brought in pipelines by human resources first to look at potential areas of synergies. Kazunori Oki joined Si-Cal as sales manager at Nissha USA, and Takanori Yoshida is principal engineer at Nissha USA.
"We are bringing Nissha resources to Si-Cal, and bringing Si-Cal's back to Nissha as a liaison of companies,” Oki said.
Oki noted that having manufacturing capabilities in the U.S. is a key to Nissha’s operations.
“We see synergies with Si-Cal,” Oki said. “Nissha produces heat transfer products in Japan, mostly through gravure printing, while Si-Cal uses roll-to-roll screen printing.
“By working with Si-Cal, Nissha is getting involved with a U.S.-based local manufacturer of medical devices, such as the EKG glove and esophageal tubes,” Oki added. “We are very interested in getting involved in this area.”
The collaboration has indeed proven to be successful. For example, Oki noted that Nissha’s R&D team has found new opportunities for PE products.
“Nissha has a huge corporate R&D team, and we are now working on the medical area, such as POCT and wearables,” Oki said. “Nissha has brought team leaders here and we are doing feasibility studies and prototypes for this market. Si-Cal has strong expertise and we have capabilities to support them.”
“It’s been 12 months since kickoff, and our relationship is a two-way street,” Tyler added. “Our sales are going to more than double this year, and we have a very large pipeline right behind these new projects. We share developed and developing technologies with one another. Nissha brought in new equipment and people, and we have the backing and ability to access resources, which is significant for us. We have a new manufacturing line on order with delivery scheduled for early summer. It will be our largest line.”
For Tyler, the personal touch of Nissha’s leadership team has been the most surprising aspect of the partnership.
“What has really impressed me is that Nissha is a very large organization with huge amounts of resources to accelerate more than $1 billion in sales as a publically traded company, and the access we have had with their senior people has really been remarkable and valuable, especially on the PE side,” Tyler concluded.