Kyocera Corporation has agreed to divest its U.S. subsidiary SouthernCarlson, Inc. to Truelink Capital Management as part of a strategic portfolio restructuring.

Target Information

Kyocera Corporation, a prominent player in the industrial tools sector, has announced the divestiture of its U.S. subsidiary, SouthernCarlson, Inc., located in Nebraska, to a local investment company, Truelink Capital Management, LLC. This decision is part of Kyocera's broader strategy to restructure its business portfolio. SouthernCarlson specializes in the sale of pneumatic and electric tools, which were acquired by Kyocera in 2019 for approximately ¥90 billion. However, the subsidiary's performance did not meet the initial expectations, prompting Kyocera to consider divestiture as a viable option for structural reform.

Industry Overview

The industrial tools sector in the United States is characterized by a robust demand for construction and manufacturing tools, driven by a recovering economy and increased construction activity. As a significant market, the industry has experienced growth in recent years, fueled by innovations and advancements in technology, particularly in the areas of automation and efficient energy use.

In Nebraska, where SouthernCarlson is headquartered, the construction and manufacturing industries play a crucial role in the local economy. With an influx of infrastructure projects and rising investments in manufacturing facilities