TOKYO, Sept. 19, 2012 (GLOBE NEWSWIRE) -- Nidec Corporation (NYSE:NJ) (the "Company" or "Nidec") today announced that it has agreed to acquire all of the shares in Kinetek Group Inc. ("Kinetek"), a U.S.-based commercial motor manufacturer, from its shareholders, including the Resolute Fund, L.P. , a private equity fund, and to acquire all of the shares in Avtron Industrial Automation Inc. ("Avtron"), a U.S.-based industrial automation system provider, from its shareholder, Morgenthaler, a private equity fund. For these purposes, the Company entered into a definitive agreement with each of the shareholders on September 19, 2012.
1. Nidec's commercial/industrial motor business is entering a new stage
The Company has endeavored to strengthen and expand its commercial/industrial motor business as one of its strategically important business areas, where Nidec Motor Corporation (formerly, Emerson Electric Co.'s motors and controls business, "NMC"), which the Company acquired in September 2010, has been the primary operating subsidiary. The contemplated acquisitions of Kinetek and Avtron are part of the Company's strategy to strengthen its commercial/industrial motor business, following the acquisition of Ansaldo Sistemi Industriali S.p.A. ("ASI") in May 2012.Assuming that the acquisitions of Kinetek and Avtron are completed as currently contemplated, as a result of the acquisitions of ASI, Kinetek and Avtron, the Company has set target net sales of ¥230 billion for the fiscal year ending March 31, 2014 for its general motors for appliance, commercial and industrial use ("ACIM") business, formerly the general motors for home appliance and industrial use business, net sales from which for the fiscal year ended March 31, 2012 were ¥124billion. The Company views the global commercial/industrial motor market as an attractive market not only in terms of its size but also in terms of its potential for providing access to high-quality customers and achieving stable growth for products with high margins. The Company intends to take advantage of its state-of-the-art technology and superior manufacturing capabilities and, through the integration of the operations of ASI, Kinetek and Avtron into its global network, further strengthen its unique solutions business.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV