Nidec Completes Acquisition of Kinetek Group Inc. and Announces Outline of Its
KYOTO, Japan, Nov. 2, 2012 (GLOBE NEWSWIRE) -- Nidec Corporation (NYSE:NJ)
(the "Company" or "Nidec") today announced that it completed the acquisition
of all of the shares in Kinetek Group Inc. (the "Acquired Business" or
"Kinetek"), a U.S.-based commercial motor manufacturer, from its shareholders,
including the Resolute Fund, L.P., a private equity fund, on November 2, 2012
(November 1, 2012, U.S. time). As a result, the Acquired Business became a
subsidiary of the Company, as outlined below.
1. Outline of the Acquired Business
a) Company Name
Kinetek Group Inc.
Nidec US Holdings Corporation, a wholly owned intermediate holding company of
the Company in the United States, owns 100% of Kinetek.
Nidec US Holdings Corp.
Chairman of the Board of Kei Pang (President and COO of Nidec Motor
Director, President and CEO: Dennis Bays
Director, Vice President and Courtney Enghauser
Director: Motoyoshi Hanaoka (Vice President of the Company)
Director: Mark Becker (Executive Vice President, General
Counsel and Secretary of Nidec Motor Corporation)
Director: Darryl Weinrich (Treasury Director of Nidec Motor
ArborLake Center Suite 550, 1751 Lake Cook Road, Deerfield, IL 60015, U.S.A.
2.Future Operation Policy and Investment Plan
The Company has endeavored to strengthen and expand its commercial motor
business as one of its strategically important business areas, where Nidec
Motor Corporation (formerly, Emerson Electric Co.'s motors and controls
business), which the Company acquired in September 2010, has been the primary
operating subsidiary. The acquisition of Kinetek is part of the Company's
strategy to strengthen its commercial motor business.
Kinetek conducts its commercial motor business on a global basis. Kinetek
occupies a leading position in various markets for commercial motors used in
such end-products as elevators/escalators, commercial food refrigerators,
floor care equipment, golf and utility vehicles, material handling vehicles,
and aerial lifts. By combining Kinetek's commercial motor business with the
Company's market-leading commercial motor business, particularly in the market
for motors used in air-conditioning equipment, the Company expects to expand
its product offerings of commercial motors by more than double and to be in a
better position to seek to become a leading player in a wider global
commercial motor market.
Kinetek's strength lies in its design capabilities to meet customers'
specifications (80% of its products are custom-made) and its ability to
deliver value-added solutions to customers.The Company expects that Kinetek's
design capabilities and value-added solutions will be offered to the existing
customers of the Nidec Group.
Kinetek has successfully entered into growing markets such as China and India.
The Company intends to seek to achieve synergies through the sale of its
existing commercial motor products in these markets and superior engineering
and sourcing capabilities in China, which are expected to enable Kinetek to
offer cost-competitive products manufactured in China and in other commercial
motor markets. The Company expects that the acquisition of Kinetek will result
in a positive impact on the Company's sales and profits on a group-wide basis.
3.Effect on Financial Performance for the Current Fiscal Year
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 applicable rules of the Japanese securities exchanges and announce any
changes to our financial performance forecasts as required thereunder.
Cautionary Statement Concerning Forward-Looking Information
This press release contains forward-looking statements regarding the intent,
belief, strategy, plans or current expectations of Nidec 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 anticipated benefits of
the transaction not being realized, shifts in technology, and changes in
business and regulatory environments. Nidec 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 required by law.
The Nidec Corporation logo is available at
CONTACT: Masahiro Nagayasu
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