Kubota Still Looking For Acquisitions
While a weakening yen is expected to impact its ability to finance offshore purchases, Kubota Corp. nonetheless remains on the acquisition trail, Kubota President Yasuo Masumoto said recently in an interview with Bloomberg.
The boost to exports from the yen’s slide, combined with more demand from North America and Southeast Asia, will probably lift revenue by about 20% to $14.6 billion in the fiscal year starting April 1, Masumoto told Bloomberg. “The yen’s depreciation is driving up our top line,” he said. “We have high expectations on the impact from gains in the currency in the coming year.”
At the same time, the weaker yen increases costs for Japanese companies when they invest in overseas assets, reducing their purchasing power. But Kubota’s need to grow in the global ag equipment markets — particularly in larger equipment — means the lower yen won’t alter its ambitions for acquisitions, Masumoto said.
Masumoto has approached acquisition targets that own large tractors and aims to settle a deal by the end of the year, he said. He did not name any acquisition targets.
Last year, Kubota bought Kverneland ASA, a Norwegian maker of tractor plow and other machinery, as a step toward global expansion.