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KYOTO, Japan, Dec. 9, 2010 (GLOBE NEWSWIRE) -- Nidec Corporation (NYSE:NJ) ("Nidec") today announced that it has agreed with Sanyo Electric Co., Ltd. ("Sanyo Electric") to purchase from Sanyo Electric all of the outstanding shares in Sanyo Seimitsu Co., Ltd. ("Sanyo Seimitsu") (the "Transaction"), and that it has entered into a share purchase agreement with Sanyo Electric on December 9, 2010.
1. Purpose of the Transaction
In order to achieve its goal to become the world's leading manufacturer of all kinds of motors, Nidec has been making efforts to strengthen its existing business. While striving to further accelerate its organic growth, Nidec has also pursued growth through acquisitions in order to achieve the goals and targets set forth in its "Vision 2015" mid- to long-term growth strategy, one of which is to create a group of companies having aggregate sales of ¥2 trillion by 2015.
In line with the foregoing, through the Transaction, Nidec intends to further develop and expand the small precision motor businesses of Nidec and Sanyo Seimitsu by effectively using the operational resources of, and efficiently developing new products and expanding sales opportunities for, their small precision motor businesses.
In the small precision motor business, one of Sanyo Seimitsu's strengths is vibration motors for mobile phones. Recently, in the mobile phone market, interest has grown for the feedback technology used in touch-screen mobile devices, including smart phones. Vibration motors are expected to become a critical component for such technology. Nidec expects that Sanyo Seimitsu's research and development capabilities in this application area will meaningfully supplement the Nidec Group's technology portfolio.
Nidec aims to improve the Nidec Group's competitiveness in the vibration motor market by developing new products through collaborative technological advancement efforts and by increasing sales opportunities through the expansion of its customer base.
2. Information on Sanyo Seimitsu
(1) Company Name: Sanyo Seimitsu Co., Ltd.
(2) Headquarters: 1771 Nakamaruko, Ueda City, Nagano, Japan
(3) Representative: Hidenori Deki
(4) Date of Establishment: October 1974
(5) Total equity: ¥273 million
(6) Principal Places of Business: China (Dongguan and Shenzhen), Indonesia (Batam), Singapore and Hong Kong
(7) Principal Businesses: Development, manufacturing and sale of small precision DC motors (vibration and general motors) *
* Sanyo Seimitsu's current EMS business and applied products business are expected to be restructured
and, prior to the closing of the Transaction, to be
discontinued or transferred to the parent company.
(8) Employees: 290 (non-consolidated basis as of March 31, 2010)
** On a pro-forma basis, excluding the contribution from the applied products and EMS businesses, which are not subject to the Transaction.
(10) Information on Parent Company (Sanyo Electric):
Headquarters: 5-5 Keihan-hondori 2-chome, Moriguchi City, Osaka, Japan
Date of Establishment: April 1950
Representative: Seiichiro Sano
Principal Businesses: Manufacturing and sale of various types of electric machinery and appliances
3. Entity Acquiring the Shares Subject to the Transaction
Sanyo Electric and Nidec are the parties to the share purchase agreement, and Nidec is currently expected to acquire all of the outstanding shares in Sanyo Seimitsu from Sanyo Electric. The Nidec Group may, however, elect to cause a subsidiary of Nidec to purchase all or a part of the outstanding shares in Sanyo Seimitsu. The Nidec Group plans to decide on which group company will purchase the shares subject to the Transaction by the date of closing.