TOKYO -- Harada Industry Co., a Japanese automotive antenna supplier, plans to buy the automotive antenna unit of Nippon Antenna Co. in a deal that would boost Harada’s North American business with Honda Motor Co. and Toyota Motor Corp.
The antenna companies, both based in Tokyo, signed a letter of intent for the purchase on Dec. 9 and aim to finalize an agreement by February. They are still negotiating the price, said Takashi Aoki, Harada’s general manager of corporate development.
Harada has a 30 percent share of the North American automotive antenna market, Aoki said. Ford Motor Co. is Harada’s second biggest customer, making up 18 percent of Harada’s sales, behind Toyota’s 23 percent. Harada’s global competitors in auto antennas include Delphi Automotive and Laird Technologies.
About 45 percent of Harada’s global sales are in Japan, and 33 percent are in North America.
The deal would boost Harada’s sales by a third. The Nippon Antenna business to be acquired booked sales of ¥6.0 billion (about $72.4 million) in the fiscal year that ended March 31. Harada had global sales that year of $214.8 million.