Nippon Otis Elevator Company ("Nippon Otis") had recently completed the acquisition of Schindler Elevator K.K.’s ("Schindler Elevator") elevator and escalator service business in Japan. Nippon Otis is the Japanese subsidiary of Otis, an operating segment of United Technologies Corporation (UTX - Free Report) . Schindler's elevator and escalator business in Japan comprises two companies - Schindler Elevator, with approximately 380 employees and Mercury Ascensore Ltd. ("Mercury"), a multi-brand maintenance service provider with approximately 220 employees. The financial aspects of the transaction remain under wraps.
Per the transaction, Nippon Otis acquired complete ownership of Mercury to form a new entity titled Otis Elevator Service Company ("OESC"). OESC will be the exclusive Original Equipment Manufacturer ("OEM") provider of Schindler equipment in Japan, which will retain its identity and operate as a separate company to fulfill its societal obligations.
This deal will enhance Otis’s foothold in Japan. The company will work together, utilizing the technical expertise of Schindler Elevator to ensure that its customers continue to receive best-in-class services, while improving growth opportunities for its employees.
Otis is the world’s largest elevator and escalator manufacturing, installation and servicing company. It serves customers in the commercial and residential property industries around the world. The company is seeking potential acquisitions to achieve aggressive revenue targets and regain its strong growth momentum.
Otis has secured three valuable contracts over the past two months in China. Such contracts and acquisitions will help the company augment its bottom-line growth.
Otis is likely to procure more such prime contracts in the near future, given its focus on innovation and expansion. Since it is already one of the most trusted elevator and escalator companies in the world, its sustained R&D focus will also help enhance top-line growth.
The company offers its services to over 200 countries and territories. Alongside, it maintains more than 1.9 million elevators and escalators worldwide.
United Technologies, the parent company of Otis, currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include Raven Industries Inc. , Sumitomo Corporation (SSUMY - Free Report) and Barloworld Ltd. (BRRAY - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
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