FOR IMMEDIATE RELEASE
|Tokyo Stock Exchange code: 6594|
Released on September 3, 2018, in Kyoto, Japan
Nidec Completes Acquisition of MS-Graessner GmbH & Co. KG and
Its Group Companies
Nidec Corporation (TSE: 6594; OTC US: NJDCY) (the “Company” or “Nidec”) today announced that the Company has acquired 100% ownership of MS-Graessner GmbH & Co. KG and its group companies (collectively “Graessner”), a privately owned German company group from its owners on August 31, 2018 (the “Transaction”) through Nidec-Shimpo GmbH which is the Germany-based affiliate of Nidec’s subsidiary, Nidec-Shimpo Corporation (“Nidec-Shimpo”). Details are as follows:
|1.Outline of Graessner|
|(1) Company Name:||MS-Graessner GmbH & Co. KG and its group companies|
|(2) Headquarters:||Dettenhausen, Baden-Württemberg Germany|
|(4) Directors:||Michael Stadler: CEO, Managing Director|
|Thomas Merk: COO, Commercial Director|
|(5) Principal Places of Business:||Germany, Austria|
|(6) Principal Business:||Manufacture and sale of gearboxes|
|(7) Employees:||Approximately 166 (as of January 31,2018)|
|(8) Financials:||Revenue: €21.8 million|
|Operating Profit: €2.1 million|
|Net Assets: €15.1 million|
|Total Assets: €26.2 million|
|(fiscal year ended December 31, 2017)|
2.Purpose of the Transaction and Future Operation
The Company has been actively engaged in manufacture, sales and after-sales services associated with gearboxes through its subsidiary, Nidec-Shimpo.
Nidec-Shimpo’s main line of gearboxes are precision planetary reducersⅰ with a particular strength in the linear type reducers whose input and output shafts are aligned. These lines of products produced by Nidec-Shimpo are currently sold in Asia, mainly in Japan and China and the Americas.
Graessner exhibits a very strong capability in right-angle precision gearboxes whose input and output shafts are arranged at an angle of 90 degrees, particularly in hypoid reducersⅱ. Graessner’s current main market for these products is Europe, mainly Germany.
As a result of the Transaction, Nidec-Shimpo is now capable of offering more comprehensive precision gearbox solutions, both linear and angular types, and leveraging Graessner’s sales network to expand its sales in Europe which offers a large market for planetary gearboxes. In addition, Nidec-Shimpo plans to manufacture its newly developed strain wave gearboxesⅲ for robotic application in Graessner’s German factory and offer its products along with after-sales services to Graessner’s customers serving the robot industry.
Likewise, Graessner can sell its products through Nidec-Shimpo’s sales and after-sales service network in Asia and the Americas. Also, Graessner’s cost performance will be improved by leveraging Nidec-Shimpo’s manufacturing capabilities in Asia. The Company expects the Transaction will offer mutually beneficial opportunities to capture the rapidly growing robotic demand.
Nidec-Shimpo and Graessner have strong brands, high technological capabilities and solid customer bases. The Company believes that its financial strength and global presence will bolster these advantages, which will help the Company achieve the future growth. The Company will continue to serve customers who desire to achieve the highest standards of productivity.
ⅰ Gearbox with the gearing mechanism where the planetary gears rotate around the center axis at the same time that it revolves around the center gear.
ⅱ Type of spiral bevel gearbox that the gears' axes do not intersect and the gears’ geometry allows contact in multiple teeth allowing higher torque transmission.
ⅲ Gearbox mechanism where the main components are the cam, flexible bearing, flexible gear and internal gear which utilizes the differential movement between the oval flexible gear and the circular internal gear, applied in applications that require small size, light weight and high efficiency such as robotics applications.
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 disclosures 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 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.