Why HOW DO Company Completes Acquisition of Goodman to Enhance Social Infrastructure

Why HOW DO Company Completes Acquisition of Goodman

The Why HOW DO Company, headquartered in Shinjuku, Tokyo, has successfully completed the acquisition of Goodman Co., a specialized manufacturer in the electrical, telecommunications, and water supply industries. This strategic move, which has been previously announced, marks a significant step towards enhancing social infrastructure. By integrating Goodman's cutting-edge technology and strong business development capabilities, Why HOW DO aims to accelerate problem-solving initiatives and foster growth in crucial infrastructure sectors.

Background of the Acquisition

The decision to acquire Goodman is part of Why HOW DO's accelerated M&A strategy, aimed at addressing social challenges and creating synergies between businesses. As aging water pipelines and infrastructure maintenance become pressing issues, Goodman's innovative leak detection technologies and high-performance measurement devices are of utmost importance. Their products play a critical role in ensuring safe water supply and maintaining communication networks.

Through this acquisition, Why HOW DO intends to incorporate Goodman's advanced technological expertise and product lines into its group, facilitating the merging of existing businesses with new ventures in the social infrastructure domain. This aligns with the company's goal of increasing corporate value and contributing more meaningfully to the management of public utilities and resources.

Strengths and Achievements of Goodman

Goodman has developed niche top products in the water and telecommunications infrastructure sectors, thanks to its exceptional technological capabilities. One of its standout products is the hydrogen tracer gas system, known as the Hydro-Tracer, which uses safely controlled hydrogen gas to detect leaks effectively, irrespective of environmental noise or variations in water pressure. This patented technology has garnered high praise for its leak detection rate and reliability, significantly boosting Goodman's sales in recent years.

Additionally, Goodman is proactive in developing new products, such as the Super Piro-chan, a digital cable-finding device that combines tone probes and non-contact line exploration technology. This innovative device can identify wiring routes quickly and efficiently, receiving positive market responses shortly after its launch. Goodman's ability to create such cutting-edge products underlines its competitive edge in the industry.

Contribution to Society and Infrastructure

Goodman's products directly contribute to the maintenance and management of social infrastructure. Its leak detection equipment helps identify water leakages in pipelines, reducing water waste and enabling effective repairs. For instance, the Hydro-Tracer works in conjunction with the Hunter leak detection system, facilitating nighttime and noisy environment leak detection considerably more efficiently. Moreover, the Zone Scan system—leveraging AI—automatically monitors water leaks across large areas, representing a groundbreaking product that assists utility companies in establishing continuous leak monitoring systems.

The significance of Goodman's technology lies in its direct impact on efficient water supply management and sustainable infrastructure development. For instance, the Zone Scan system is currently utilized by prominent water service providers, including Tokyo's Water Bureau, highlighting Goodman's essential role in public utility management.

Business Expansion and Market Presence

Goodman has established a robust business foundation by leveraging its partnerships with major trading companies and has experienced consistent revenue growth, having increased its sales for four consecutive years. Noteworthy clients such as Watanabe Pipe and Trusco Nakayama indicate the credibility of Goodman's distribution channels.

High-value products like the Hydrogen Tracer, gas leak detection devices, and the Zone Scan system are the pillars of Goodman's revenue, maintaining significant market share in niche segments. For instance, the Tone Probe, a tool used for confirming circuit integrity in telecommunications, boasts about a 90% domestic market share, reflecting Goodman's notable influence in the telecommunications sector.

Global Collaboration and Development

Goodman has cultivated long-standing partnerships with leading global measurement equipment manufacturers. Its exclusive distribution rights in Japan include brands like Gutermann from Switzerland, Radiodetection from the UK, and Tempo Communications from the US. Goodman's introduction of advanced leak detection technologies, like the Zone Scan system, has set a precedent in the Japanese market, with successful deployments in cities across Europe.

In addition to focusing on imported products, Goodman is also committed to domestic production. It has established a new manufacturing subsidiary, M-Tech, aimed to strengthen the mass production framework for the Hydro-Tracer, ensuring quality control and stable supply. Products like the Super Piro-chan are manufactured in Japan, bolstering local trust and reliability in its offerings.

Future Outlook

With Goodman's integration, Why HOW DO sees an opportunity for synergistic growth by combining its digital AI capabilities with Goodman's infrastructure expertise. By leveraging Goodman's leak detection and measurement technologies alongside its own advancements in AI, the company envisions expanded avenues in smart city initiatives and IoT infrastructure monitoring.

As part of this transition, the experienced sales personnel from Why HOW DO will assume newly established leadership roles in Goodman, enhancing sales strategies and customer engagement across various sectors.

The collaboration embodies a meaningful response to pressing societal questions surrounding infrastructure reliability. With a commitment to innovative solutions, Why HOW DO aims to significantly address social challenges in Japan's water supply and broader infrastructure domains.

Representative Commentary

Shingo Kameda, CEO of Why HOW DO Company, expressed, “We are thrilled to welcome Goodman, a trusted name in social infrastructure for many years, into our group. Their commitment to excellent product quality and focus on site needs aligns perfectly with our vision. As we tackle issues like infrastructure decay and water resource loss, Goodman’s pioneering leak detection technologies are vital in supporting society from the ground up. The merging of our strengths empowers us to tackle external challenges proactively, fostering sustainable infrastructure and corporate growth.”