Nidec Corporation (TSE: 6594; OTC US: NJDCY) (the “Company” or “Nidec”) today announced that the Company has agreed to acquire a 70% ownership of a privately owned German company, DESCH Antriebstechnik GmbH & Co. KG and its group companies in Germany and China (collectively “DESCH”), from its owners on January 31, 2019 (the “Transaction”) through Nidec-Shimpo GmbH, a Germany-based affiliate of Nidec’s subsidiary, Nidec-Shimpo Corporation. Details are as follows:
|1. Outline of DESCH|
|(1) Company Name:||DESCH Antriebstechnik GmbH & Co. KG and its group companies|
|(2) Headquarters:||Arnsberg, Germany|
|(4) Directors:||Hendrik Desch, CEO
Olaf Desch, Managing Director
(With positions remaining unchanged after the Transaction)
|(5) Principal Place of Business:||Germany|
|(6) Principal Business:||Manufacture and sale of large precision gearboxes|
|(7) Employees:||Approximately 400|
|(8) Sales:||EUR 64.7 million (fiscal year ended December 31, 2017)
EUR 92.9 million (estimated, fiscal year ended December 31, 2018)
2. Purpose of the Transaction and Future Operation Policy
Nidec has been actively engaged in manufacture, sales and services associated with reduction gearboxes and pressing machinery business through its subsidiary, Nidec-Shimpo Corporation.
Nidec-Shimpo has a consolidated strong presence in the gearbox market with its linear precision planetary reducers (input and output shafts are aligned) and right-angle precision reducers (input and output shafts are arranged at an angle of 90 degrees) manufactured by the German company MS-Graessner acquired by Nidec-Shimpo last August. Both types of gearboxes are characterized as small precision reducers, mainly used in automated machinery applications such as semiconductor manufacturing equipment, packaging machinery, printing machinery and robotics industry.
DESCH is a leading brand with strong presence especially in Europe and known for its world-class quality in large precision gearboxes and drive systems including clutches and brakes, used in applications such as machine tools, construction machinery, agricultural machinery and press machines.
Through the Transaction, Nidec-Shimpo will have access to the large precision gearbox market in addition to its current small precision gearbox market.
Furthermore, Nidec-Shimpo will sell their products through DESCH’s customer channel in Europe. Likewise, DESCH will expand their business by using NidecShimpo’s sales and service network in Asia and the Americas.
Nidec-Shimpo and DESCH expect to mutually leverage their technology, brand strength and global customer bases, backed by Nidec’s finance flexibility.
3. Effect on Financial Performance for the Current Fiscal Year
The Transaction is expected to have no significant impact on the Company’s consolidated financial performance for the fiscal year ending March 31, 2019. If necessary, the Company will make additional disclosure on a timely basis in accordance with the rules of the Tokyo Stock Exchange upon determination of further details.
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 integrating the acquired business with the Nidec Group, the anticipated benefits of the Transaction not being realized, changes in general economic conditions, shifts in technology or user preferences for particular technologies, whether and when required regulatory approvals are obtained, other risks relating to the successful consummation of the Transaction, 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 may be required by law.