Yamaha Motor Corp., U.S.A., has acquired Precision Propeller, Inc., an Indianapolis-based producer of stainless steel outboard motor propellers.
PPI has capital of $12.4 million. Yamaha says the purpose of the acquisition is to strengthen production capacity at PPI and ensure the high quality of the stainless steel propellers it supplies for Yamaha outboard motors. Until now, about half of the propellers PPI produced have gone to Cypress, Calif.-based Yamaha Motor, and making the company a part of the Yamaha Motor group will ensure a stable supply of these parts.
Yamaha established a new company under the name Precision Propeller Industries, Inc. (the new PPI) and acquired the corporate assets necessary to carry on the corporate operations of the former PPI under new management. Yamaha's Phil Dyskow, who serves as president, now leads the company.
Operations began July 22 under the new managerial arrangement that makes PPI a member of the Yamaha Motor group. Yamaha says provisions have been made for the 70 existing PPI employees to continue working at the new PPI.
The purchase is a step toward achieving two of the priorities set in Yamaha Motors' 2008 to 2010 medium-term management plan: strengthening the outboard motor lineup in the mid- to large-size model range and increasing profitability by expanding sales of four-stroke outboard models.