Hitachi Construction Machinery subsidiary H-E Parts International reached an asset purchase agreement with Brake Supply on November 1 for its mining machinery component remanufacturing business.
Through the acquisition, which is expected to be completed in early December, H-E Parts will utilize Brake Supply’s North American remanufacturing bases, parts warehouses, and human resources, thereby strengthening the structure of the remanufacturing business in the Americas.
In March 2022, the Hitachi Construction Machinery Group began its independent deployment of operations, ranging from new machine sales to the value chain business, through its own network across the Americas. As a result, the company has been accelerating its business development in the Americas market, which is the world’s largest.
H-E Parts provides comprehensive solutions for mining operations, including maintenance and repair of mining machinery and equipment, as well as parts fabrication and component remanufacturing to meet customer needs. The company is expanding its business globally, with a primary focus on Australia and the Americas.
Brake Supply’s business activities include the remanufacturing of components for mining excavators and dump trucks, such as cylinders, fluid power components, wet brakes, and final drives. More than 90% of Brake Supply’s sales are in North America, where the company has five remanufacturing bases, five parts warehouses, and many engineering-related human resources. Since there is little overlap between H-E Parts’ existing North American bases and Brake Supply’s bases, H-E Parts will be able to expand its service network quickly and efficiently through this acquisition.
In the Hitachi Construction Machinery Group’s “BUILDING THE FUTURE 2025” medium-term management plan that began in FY2023, “Expanding business in the Americas” is positioned as one of the four core strategies. Through this acquisition, H-E Parts aims to expand the scale of its business in the Americas region.
“This acquisition allows us to strengthen our offerings and expand our footprint,” said Simon Pelletier, president and CEO, H-E Parts. “By welcoming Brake Supply into the H-E Parts family, we are combining our capabilities to offer an even wider range of products and services to our customers.”
Source: Hitachi