Japan’s Nidec Corporation, the world’s leading manufacturer of motors for hard-disk drives, has entered into an asset and stock purchase agreement with Emerson Electric Co. (EMC) to acquire EMC’s Motors & Controls business in an all cash deal. Terms of the arrangement were not disclosed.
Nidec believes that EMC’s large industrial motors, medium-size central air conditioning motors, related motion control technologies and the developing main motors for electric vehicle and hybrid electric vehicles, will not only expand Nidec’s current product portfolio, but also contribute to further stabilizing volatility in its profitability.
In addition to its existing small precision motors used mainly in IT devices, Nidec has been working to expand its business in automobile, industrial and home appliance motors, utilizing its core technology in brushless DC motors. (Earlier post.) It has also been expanding its business by accelerating M&A strategies, under Vision 2015, which aims to grow Nidec into a global enterprise group with annual sales of ¥2 trillion (US$23.4 billion) by the fiscal year 2015.
EMC has a number of development, production and sales centers mainly in the United States and in other areas, including Mexico, People’s Republic of China and the United Kingdom. EMC has a strong base in the US, and combined with Nidec’s existing operations centering in Asia and Europe, will enable the Nidec Group to operate in all key geographical locations.
In January 2010, Nidec acquired Sole Motors (currently, Nidec Sole Motor Corporation ¿) and has strived to strengthen its home appliance motor business in Europe. Through the acquisition of EMC, which has a strong presence in the home appliance motor business in North America, it intends to scale up its home appliance motor business with a renewed focus on research and development, manufacturing and sales activities.
Nidec expects the closing of the acquisition of EMC to occur by 30 September 2010, following the receipt of required regulatory approvals.