Nidec Sankyo to Acquire Mitsubishi Materials C.M.I. Corporation

Nidec Sankyo to Acquire Mitsubishi Materials C.M.I. Corporation

KYOTO, Japan, Sept. 25, 2013 (GLOBE NEWSWIRE) -- Nidec Corporation (NYSE:NJ)
today announced that one of its wholly owned subsidiaries, Nidec Sankyo
Corporation ("Nidec Sankyo"), has agreed to purchase all of the shares of
common stock of Mitsubishi Materials C.M.I. Corporation ("CMI") from
Mitsubishi Materials Corporation ("Mitsubishi Materials") (the "Transaction").
Nidec Sankyo and Mitsubishi Materials have entered into a basic agreement in
connection with the Transaction as of September 26, 2013.

1. Objectives of the Transaction

As a member of the Nidec Group, Nidec Sankyo has been seeking opportunities to
acquire businesses as part of its growth strategy, and has been endeavoring to
grow and expand each of its major business lines with an M&A strategy tailored
for each such business line. As part of these strategic efforts, in October
2012, Nidec Sankyo made an investment in SCD Co., Ltd., a South Korean
manufacturer of motor drive units for home electric appliances, to make SCD a
subsidiary with an aim to enhance its product portfolio, and has sought to
strengthen its home appliance and residential and facility equipment
businesses. The contemplated acquisition of CMI is intended to strengthen
Nidec Sankyo's automotive product business and, if completed as planned, will
be the second acquisition transaction entered into by Nidec Sankyo with an aim
to enhance its product portfolio.

Nidec Sankyo has established its current position in the motor market
primarily by offering stepping motors with a particular focus on
small-diameter motors for optical disk drives, digital cameras, gaming
consoles and other products. However, the markets for personal computers,
digital cameras, gaming consoles and other products, which use mainly
small-diameter stepping motors in which Nidec Sankyo has competitive
strengths, have been maturing. Under these circumstances, Nidec Sankyo has
made it a high priority to enhance and expand its product portfolio by
entering into new markets for stepping motors.In particular, Nidec Sankyo has
been considering entering into the automotive motor market, which is expected
to grow significantly with expanding uses of such motors for electronically
controlling fuel injection valves to improve fuel efficiency and enhancing the
functionality of head-up displays.

CMI engages primarily in motor and electric contact product businesses, each
of which has generated approximately one half of CMI's total sales in recent
periods.

CMI's motor business primarily focuses on medium-diameter stepping motors
particularly for the automotive and other products markets.Since CMI's
product lines do not have much overlap with Nidec Sankyo's product lines, the
Transaction is expected to result in enhancement of Nidec Sankyo's product
line-up.In addition, CMI's high reputation for its technology and reliability
among customers in the growing automotive stepping motor market is expected to
enable Nidec Sankyo, though CMI, to quickly enter into the market, which is
known to require a substantial time to enter, and gain a stable customer
base.Furthermore, if Nidec Sankyo's cost competitiveness supported by its
internal manufacturing capacity of more than 35 million units per month is
successfully applied to CMI's medium-diameter motors, Nidec Sankyo's
competitiveness may be further improved.

As discussed above, the efficient use of managerial and operational resources
of Nidec Sankyo and CMI is expected to result in enhancement of the product
portfolio, efficiency in product development and improvement in cost
competitiveness for both companies. At the same time, CMI's products, which
are currently sold mostly to Japanese customers, can be offered to new markets
on a global basis through the Nidec Group's marketing channels.

With respect to CMI's electric contact product business, CMI is particularly
strong in the market for on-vehicle relay products, which are necessary for
switching on and off and reversing the rotational direction of automotive
motors.The on-vehicle relay product market is expected to grow as the global
automobile production and the number of motors used for each automobile
increase.Moreover, CMI owns manufacturing facilities in China where global
automotive relay manufacturers are concentrated.This geographical advantage
is expected to contribute to the Nidec Group's efforts to expand its
group-wide automotive motor business, which is a strategic growth business
area of the Nidec Group, by entering into new markets and expanding its
business operations in the Chinese automotive motor market.

Nidec Sankyo intends to continue to shift its operational focus to growth
areas by seeking opportunities to acquire businesses and to endeavor to
accelerate organic growth in an effort to further expand its business
operations.

2.Information on CMI (Company to Be Acquired)

(1) Company Name:          Mitsubishi Materials C.M.I. Corporation
(2) Headquarters:          46-1 Senpuku, Susono City, Shizuoka, Japan
(3) Establishment:         January 10, 1966
(4) Principal Locations of 
Operation:
                          Headquarters, Toyama Prefecture (Japan), Indonesia,
                           Malaysia, and Shanghai (China)
                           Development, manufacturing and sale of small
(5) Principal Businesses:  motors, electric contact products and other
                           products
(6) Total Paid-in Capital: JPY 490 million
(7) Employees:             1,544 (consolidated) and 359 (non-consolidated)
                          (as of March 31, 2013)
(8) Sales for Previous Fiscal Year (ended March 31, 2013):
                          JPY 13,386 million (consolidated) (managerial
                           basis)
(9) Assets as of End of Previous Fiscal Year (March 31, 2013):
                          Current Assets: JPY 5,826 million (consolidated)
                          (managerial basis)
                          Fixed Assets: JPY 2,981 million (consolidated)
                          (managerial basis)

3.Information on the Transaction

(1) Number of Shares to Be Acquired:
                          490,000 (Percentage of Total Outstanding Shares:
                           100%)
(2) Consideration:         Cash
(3) Payment and Funding:   Cash on hand
                           Nidec Sankyo will acquire the shares in CMI
(4) Transaction Structure: pursuant to a share purchase agreement to which
                           Nidec Sankyo will be a party.
(5) Schedule (Plan):       Closing of the Transaction: December 2013

4.Information on Mitsubishi Materials (Seller of the Shares in CMI)

(1) Company Name:   Mitsubishi Materials Corporation
(2) Headquarters:   1-3-2 Otemachi, Chiyoda-ku, Tokyo, Japan
(3) Representative: Hiroshi Yao
(4) Establishment:  1950

5.Effect on Financial Performance for the Current Fiscal Year

Nidec Corporation intends to make appropriate disclosure of the impact of the
Transactions described herein on its consolidated financial performance for
the current fiscal year and announce any changes to its financial performance
forecasts in accordance with the applicable rules of the Tokyo Stock Exchange
once such details are determined.

Cautionary Statement Concerning Forward-Looking Information

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 completing the planned transaction, the anticipated benefits of
the planned transaction not being realized, changes in general economic
conditions particularly in the computer, information technology, home
appliance, industrial and commercial machinery and equipment, automobile and
related product markets, 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
required by law.

CONTACT: Masahiro Nagayasu
         General Manager
         Investor Relations
         +81-75-935-6140
         ir@nidec.com

Nidec Corporation