Nidec Corporation (TSE: 6594) (OTC US: NJDCY) (the “Company” or “Nidec”) announced on February 1, 2017 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.
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 fulfil evolving customer need. 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 line-up 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.
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.
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.