Today, officially became the day when Olympus finalized its agreement with JIP (Japan Industrial Partners Inc.) to transfer over its entire Imaging Business.
Olympus has been in financial trouble for a long time and things have been on a downward spiral ever since 2011, when whistleblower, and then CEO, Michael Woodford found out that Olympus has been falsifying financial statements for two decades to hide losses of over $1 billion USD.
This combined with the shrinking demand for DSLR and mirrorless cameras ultimately spelled disaster for the Olympus Imaging Business.
The only good news to come out of this is that there will still be an imaging business. The New Imaging Company as it is being called in this agreement will continue to provide high-quality, highly reliable products. Built on a solid foundation, including the Zuiko and OM brands, which are grounded in optics and digital imaging technologies cultivated by Olympus over many years, the New Imaging Company will be appropriately positioned to further pursue new developments.
Just what all of this means in terms of new products or cameras coming out we will have to see.
Below you can read the entire press release that was issued today.
Tokyo, September 30, 2020 – Olympus Corporation (“Olympus”) today concluded a definitive agreement with Japan Industrial Partners Inc. (“JIP”) regarding the transfer of the Olympus Imaging business. Under the agreement, Olympus will transfer its Imaging business to a newly established wholly-owned subsidiary of Olympus (the “New Imaging Company”), through an absorption-type split. This is to be followed by transferring 95% of the shares of the New Imaging Company on January 1, 2021, to OJ Holdings, Ltd., a special purpose company established by JIP.
Olympus began the manufacture and sale of cameras using the Zuiko lens in 1936 and became one of the world’s leading camera makers. Olympus was among the first companies to make small, lightweight compact cameras with professional quality, such as the award-winning Olympus ‘OM’ and ‘Pen’ series. Driven by the desire to make people’s lives more fulfilling around the world, the company applied innovative technology and unique product development to distinguish itself in a highly competitive industry.
In recent years, however, the market has shrunk rapidly due to the evolution of smartphones, leading to a significant downturn for the digital camera market globally. Despite taking various steps to improve its cost structure and efficiency, Olympus’ Imaging business recorded operating losses for three consecutive fiscal years up to March 2020.
Under such circumstances, Olympus concluded that, by carving-out the Imaging business and operating the business under JIP, its business structure would become more compact, efficient, and agile, and it is the most appropriate way to realize self-sustainable and continuous growth. With a loyal following and long history of innovative products, the New Imaging Company would be committed to building on Olympus’ accumulated expertise and to continue providing customers with innovative, high quality cameras under the new business structure.
“I would like to express my heartfelt gratitude to all our customers for their patronage and support of Olympus products, and for their passion devoted to photography. I have the utmost confidence that this transfer is the correct step forward in sustaining the value of our products and services,” said Yasuo Takeuchi, President and CEO of Olympus Corporation.
“At the same time, I am certain that this opportunity is the best choice for our long-time patrons, new customers and photography enthusiasts. Under the new company, the development, manufacturing, sales and service functions will continue tight collaboration to introduce new products that will satisfy customers,” Takeuchi added.
The agreement applies to Olympus’ global Imaging business, which includes all R&D and manufacturing facilities currently dedicated to its Imaging business. The New Imaging Company will continue to provide high-quality, highly reliable products. Built on a solid foundation, including the Zuiko and OM brands, which are grounded in optics and digital imaging technologies cultivated by Olympus over many years, the New Imaging Company will be appropriately positioned to further pursue new developments.
Head of sales and marketing, R&D and designing departments for imaging products will be relocated to the headquarters of the New Imaging Company in Hachioji, Tokyo. Production will continue at the location in Dong Nai province, Vietnam, where imaging products are currently manufactured. The New Imaging Company will continue to provide customer support for the imaging products which have been manufactured and sold by Olympus.
Following the transfer of the Imaging business, Olympus will concentrate on Medical and Scientific Solutions, in our ongoing efforts toward making people’s lives healthier, safer and more fulfilling.
Information on the New Imaging Company is as follows.
- Company name: OM Digital Solutions Corporation
- Location: Hachioji, Tokyo
- Representative Director: Shigemi Sugimoto
- Business operations: Operations involving the manufacture and sale of digital cameras (primarily mirrorless interchangeable lens cameras), interchangeable lenses, IC recorders, and other audio products
- Capital: Not fixed
