BCS Group is selling an 80% stake to Daifuku.
11 November 2014
New Zealand’s BCS Group, which deals in baggage handling and logistics systems, is selling an 80% stake in the company to its Japanese competitor, Daifuku. Osaka, Japan-based Daifuku is one of the largest materials handling companies globally, with an annual turnover in excess of USD 2.3 billion. The company will continue to operate as usual with staff and company practices unchanged, but BCS CEO, Patrick Teo, said that the acquisition would give the company much needed scope in the market. “We see it being mutually beneficial,” Teo said. “BCS adds to Daifuku’s global presence in baggage handling, and we are big in countries where they are not.” Teo said that company growth had been restricted by slower traction in the market, not a lack of funds, and said the partnership with Daifuku would open the market up for the company to expand further. According to Teo the acquisition would create a need for more jobs in the company and would increase their R&D spend. “The reality is that we will increase our portfolio of innovative solutions and products that will benefit not only our customers in the airport sector but also in the high growth courier sortation market,” Teo said. “We will also be investing more heavily into R&D and that has got to be good both from an employment perspective and our on-going need for more staff, as well as creating more high value jobs,” he said. The acquisition will be completed in December 2014, with current management and structure remaining unchanged, and two Daifuku staff joining the BCS Group’s board.