Tokyo (SCCIJ) – Mabuchi Motor from Chiba has bought the Swiss company Electromag from Ecublens. Mabuchi is the world’s largest manufacturer by volume of small electric motors, producing over 1.2 billion units annually. Electromag specializes in ultraquiet and ultrasmall electric engines for medical equipment, especially in hospital care ventilation.
Expansion into healthcare
Mabuchi Motor with about 21,000 employees worldwide and listed on the Tokyo Stock Exchange has a strong presence in the automotive products as well as the consumer and industrial markets. With the acquisition of Electromag, Mabuchi can expand its sales to the medical market and increase its expertise in brushless motors.
The Japanese company is building the healthcare business as a new pillar by aiming for the leading position in the ventilator market. The acquisition in Switzerland also enables Mabuchi to add unique brushless motor technologies. It will widen its standardized product line-up by developing brushless motors for small light electric vehicles and collaborative robots.
Gaining market share
The ultra-quiet and ultra-small Swiss electric engines are found in machines for critical care and sub-acute ventilation, in homecare ventilation, emergency and transport ventilators, in endodontic, orthopedic and surgical power tools and in dental implantology and podiatry drills. The power ranges from 1 watt to 200 watts, with a diameter below 100 mm.
Mabuchi wants to integrate the Swiss technologies to develop new innovative motors for wellness and healthcare applications. The second goal is the expansion of sales by using both sales channels and customer bases. Third, Mabuchi hopes to gain market share by implementing new competitive products achieving both high-quality and low-cost.
The acquisition in Switzerland will help to achieve the current mid-term management plan. By 2023, Mabuchi aims for an annual growth rate of 8% to 10% for net sales, an operating margin of 15% or more, and a return of investment capital of 12% or more.
Sales double in 2020
Electromag was established in August 2003 close to Lausanne to manufacture motors for healthcare applications. In 2020, the team of about 30 employees could almost double sales to CHF 21.3 million, mainly due to increased demand caused by the Covid-19 pandemic.
The transaction with Japan will benefit Electromag through the backing of a powerful partner. Founder and CEO Vincent Comte held all shares of the small Swiss enterprise himself. He will continue to lead the company. The purchase price is paid in cash and kept confidential.
Text: Martin Fritz for SCCIJ