JAN 01, 2017
February 1st 2017 - Nidec Corporation (TSE: 6594) (OTC US: NJDCY) (the “Company” or “Nidec”) announced today that the Company completed the pre-announced acquisition of the motors, drives and electric power generation businesses (the “Acquired Business”) of Emerson Electric Co. (“Emerson”) (the “Transaction”) on February 1, 2017, Japan time, except for acquisitions in certain jurisdictions.
As a result of the Transaction, the Acquired Business, consisting of the companies listed below, became Nidec’s subsidiaries. The remaining acquisitions, including Leroy Somer Electro-Technique (Fuzhou) Co., Ltd., are scheduled to be completed by September 30, 2017.
1. Outline of the New Subsidiaries
1) Company Names
This press release contains forward-looking statements regarding the intent, belief, strategy, plans or expectations of the Nidec Group or other parties. Such forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors, including, but not limited to, the risks to successfully integrating the acquired business with the Nidec Group, the anticipated benefits of the Transaction not being realized, changes in general economic conditions, shifts in technology or user preferences for particular technologies and changes in business and regulatory environments. The Nidec Group does not undertake any obligation to update the forward-looking statements contained herein or the reasons why actual results could differ from those projected in the forward-looking statements except as may be required by law.
Cautionary Statement Concerning Forward-Looking Information
Once we determine the impact of the Transaction on our financial performance for the current fiscal year, we will make appropriate disclosure pursuant to the rules of the Tokyo Stock Exchange, and announce any changes to our forecasts as required thereunder.
3. Effect on Financial Performance of the Current Fiscal Year
We believe that the Transaction will accelerate the Company’s growth by integrating significant technological capabilities, strong brands and excellent customer bases of both Nidec and the Acquired Business, and contribute towards achieving its mid-term growth strategy target of two trillion yen in sales in fiscal year ending March 2021.
The Acquired Business has a strong brand, solid business foundation and excellent customer base, particularly in Europe and North America. Nidec expects to accelerate the Acquired Business’s growth with expected synergies including 1) complementary product fit with full lineup in industrial products and geographic fit and 2) enhancement of proposal to customers by combining the Acquired Business’s drives with Nidec’s existing products.
Nidec has been actively developing a new growth platform with particular focus on industrial and commercial businesses. In line with this strategy, the Transaction enables Nidec to further enhance and expand its industrial and commercial businesses to flexibly fulfill evolving customer need.
2. Purpose of the Transaction and Future Operation Policy
|1) Directors and Officers|
|Director (Secretary):||Christopher Birks|
|Director:||Guillaume de la Codre|
|Powys, United Kingdom|
Outline of Control Techniques Limited (UK)
|1) Directors and Officers|
|Director and Chairman:||Xavier Trenchant|
|Director and Deputy CEO:||Guillaume de la Codre|
Outline of Leroy-Somer Holding (France)
2) Capital Structure
3) The companies below will play central roles in the control and management of the Acquired Business.
|Country||Current Company Name||Planned New Company Name|
|France||Leroy-Somer Holding||Nidec Leroy-Somer Holding|
|UK||Control Techniques Limited||Nidec Control Techniques Limited|
|USA||Emerson Industrial Automation USA||Nidec Industrial Automation USA|
|USA||Kato Engineering Inc.||Kato Engineering Inc.|
|India||Emerson Industrial Automation Electric Power Generation Private Limited||Nidec Industrial Automation India Limited|