Nippon Otis Elevator to Acquire Schindler’s Elevator Service Businesses in Japan


TOKYO, Japan, April 5, 2016 – Nippon Otis Elevator Company (“Nippon Otis”) and Schindler Elevator K.K. (“Schindler Elevator”) today announced that they have signed an agreement for Nippon Otis to acquire the elevator and escalator service business of Schindler in Japan.

Schindler’s elevator and escalator service business in Japan consists of two companies, Schindler Elevator, with approximately 390 employees, and Mercury Ascensore K.K. (“Mercury”), a multi-brand maintenance service provider with approximately 210 employees.

In this transaction Nippon Otis will acquire all shares of Mercury and a new company (“NewCo”) to be formed by transferring the elevator and escalator service business, related employees and assets of Schindler Elevator. NewCo will be the exclusive, authorized Original Equipment Manufacturer (OEM) maintenance service provider of Schindler units in Japan and will have access to original OEM spares and systems for continued maintenance and upgrade for Schindler products in Japan.

Schindler Elevator will remain in Japan as an entity to meet its legal and societal obligations with respect to ongoing litigation and investigations and will take all necessary actions until these are resolved.

The financial terms of the transaction are not disclosed. The transaction is expected to close later this year, and is subject to regulatory approvals and customary closing conditions.

Nippon Otis and Schindler Elevator will work to ensure that customers of the new company and Mercury receive seamless continuity in the service of their units once the transaction closes. With safety at the forefront, Nippon Otis will draw on its long experience and deep knowledge of the Japanese elevator and escalator industry to extend their high quality of service to the customers of NewCo and Mercury.

"We are very pleased to announce the signing of this agreement," said Stephane de Montlivault, President, Northeast Asia, Otis Elevator and President, Nippon Otis Elevator Company. “We are extremely proud of our long history in Japan, and this transaction, when completed, will not only serve to further our commitment to Japan and Japanese society, but is another step in our growth since we started doing business in Japan over 120 years ago. We take pride in being a trusted partner for our customers and have the utmost commitment to safety. We look forward to welcoming our new customers and colleagues, and will bring our global experience and expertise to grow the new company and Mercury businesses.”

“We are confident that this transaction will ensure continuing best service for our customers and new growth opportunities for our employees in Japan,” said Rene Kunz, President, Schindler Elevator K.K. “With all the investment in safety and reliability for our customers over the past years, we are handing over a solid and healthy operation to Nippon Otis, a long-standing and reputable company. Nevertheless, we wish to emphasize that Schindler Elevator will remain as an entity in Japan to fulfill its legal and social responsibilities.”

For further information please contact:
Nippon Otis:
J. Kumamaru, Nippon Otis Communications Department Tel: +81-3-5981-0354
M. Yasu/Y.Kato, Edelman Japan Tel. +81-3-4360-9000
Schindler Elevator:
M. Gotsubo, Schindler Elevator Communications Department Tel: +81-3-5646-5476
I. Imai, Kreab Tel: +81-3-5404-0640

About Nippon Otis Elevator Company:
Nippon Otis Elevator Company is the Japanese subsidiary of the US headquartered Otis Elevator Company, the world’s largest manufacturer and maintainer of people-moving products, including elevators, escalators and moving walkways. Consistent with the vision of the creator of the modern safety elevator, Otis is specialized in new construction, installation, maintenance and repair of people-moving products, with a history of more than 120 years in Japan. The first Otis elevator in Japan was installed in 1896, the first escalator was installed in 1914, and the forebear to the current Nippon Otis Elevator Company was established in 1932. Through its companies, Otis maintains over 1.9 million elevators and escalators in more than 200 countries around the world. Otis is a unit of United Technologies Corp., a leading provider to the aerospace and building systems industries worldwide. For more information, visit http://www.otis.com/site/jp and http://www.otisworldwide.com.

About Schindler Elevator K.K.
Starting with the previous Nippon Elevator Industry Co. Ltd. in 1954, Schindler Elevator K.K. was established in 1991 and is the Japanese operating entity of the Switzerland-based Schindler Group. Schindler is a leading global provider of elevators, escalators and related services. Schindler mobility solutions move more than one billion people every day all over the world. Its innovative and environmentally-friendly access and transit-management systems make an important contribution to mobility in urban societies. Behind the company's success are over 56,000 employees in more than 100 countries.For more information, visit http://www.schindler.com/jp and http://www.schindler.com/jp.

About Mercury Ascensore K.K.
Headquartered in Kagoshima Prefecture, Mercury Ascensore K.K. is a maintenance and service provider for elevators, escalators and automated car-parking machines covering service range from 24 hour emergency call systems to renewal. Mercury Ascensore has been providing quality services backed by technology to customers at competitive prices. Mercury Ascensore’s mission is to win customer satisfaction. Since it was established in 1971, it has accumulated know how to provide robust maintenance systems that do not compromise on safety but that has no frills to achieve high cost performance. For more information, visit http://www.ascensore.co.jp.

This release includes "forward looking statements" concerning an anticipated transaction, its financial and business impact, the beliefs and objectives of each party with respect thereto, and current expectations for future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "expect," "plans," "strategy," "anticipate," "will," "confident" and other words of similar meaning in connection with a discussion of future operating or financial performance. At this time, it remains uncertain whether the transaction announced will be completed and what impact it will have on results of operations and financial condition of each company. These forward looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those anticipated, including, but not limited to, the ability of the parties to satisfy the conditions precedent and consummate the anticipated transaction; the timing of consummation of the transaction; the ability of the parties to secure regulatory approvals in a timely manner or on the terms desired or anticipated; and the ability of each company to implement anticipated business plans following closing and achieve anticipated benefits. Other important economic, political, regulatory, legal, technological, competitive and other uncertainties are identified in filings submitted by United Technologies Corporation to the U.S. Securities and Exchange Commission from time to time, including its Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K, and Current Reports on Form 8-K. The forward looking statements included in this press release are made only as of the date hereof. Each company undertakes no obligation to update the forward looking statements to reflect subsequent events or circumstances.

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