Nidec to Acquire Kinetek Group and Avtron Industrial Automation
Nidec Corporation (NYSE: NJ) today announced that it has agreed to acquire all of the shares in Kinetek Group from its shareholders, including the Resolute Fund, L.P. , a private equity fund, and to acquire all of the shares in Avtron Industrial Automation Inc. ("Avtron"), a U.S.-based industrial automation system provider, from its shareholder, Morgenthaler, a private equity fund. For these purposes, the Company entered into a definitive agreement with each of the shareholders on September 19, 2012.
1. Nidec's commercial/industrial motor business is entering a new stage
The Company has endeavored to strengthen and expand its commercial/industrial motor business as one of its strategically important business areas, where Nidec Motor Corporation (formerly, Emerson Electric Co.'s motors and controls business, "NMC"), which the Company acquired in September 2010, has been the primary operating subsidiary. The contemplated acquisitions of Kinetek and Avtron are part of the Company's strategy to strengthen its commercial/industrial motor business, following the acquisition of Ansaldo Sistemi Industriali S.p.A. ("ASI") in May 2012.
Assuming that the acquisitions of Kinetek and Avtron are completed as currently contemplated, as a result of the acquisitions of