Canon Acquiring Toshiba Medical Finance in Bid to Grow its Medical-Equipment Business

Canon Inc. of Tokyo, Japan,  reports today that it’s concluded a share transfer agreement to acquire the shares of Toshiba Medical Finance of Tokyo, Japan. Canon will make Toshiba a subsidiary.

Under Phase V of its “Excellent Global Corporation Plan,” a five-year initiative launched in 2016, Canon says it aims to “embrace the challenge of new growth through a grand strategic transformation.”

Under the plan, expanding and acquiring new businesses is said to be a key component. Canon also says it intends to cultivate its health-care business within the safety and security sector as a next-generation pillar of growth.

As part of this initiative, Canon acquired the shares of Toshiba Medical Systems Corporation (TMSC) on December 19, 2016, and made TMSC a subsidiary. TMSC holds 35 percent of the shares of TMF, a company that is involved in the leasing of medical and other equipment. By acquiring the remaining 65 percent, and making TMF a subsidiary, the firm plans to accelerate growth of its medical-equipment business, building a collaborative organization from a TMSC and TMF marketing perspective.

Toshiba Medical Finance is located in Tokyo, Japan, and was established in 1970. Its business includes the lease and sale of medical and other equipment. For its fiscal year that ended in March 2016, it reported net sales of 15,259 million yen, operating profit of 456 million yen, and net income of 287 million yen.

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