KYOTO, Japan, March 28, 2017 (GLOBE NEWSWIRE) -- Nidec Corporation (TSE:6594) (OTC US:NJDCY) (the “Company” or “Nidec”) today announced that the Company has acquired a 100% ownership of Vamco International, Inc. (“Vamco”), a privately owned US company and industry leading high-speed feeding equipment manufacturer, from its owners on March 27, 2017 (the “Transaction”) through the Company’s subsidiary, Nidec Minster Corporation. As a result of the Transaction, Vamco became a consolidated subsidiary of Nidec, as outlined below:
1. Outline of New Subsidiary
|(1) Company Name:||Vamco International, Inc.|
|(2) Headquarters:||Pittsburgh, Pennsylvania, U.S.A.|
|(4) CEO:||Bryan Gentile, the current president of Vamco will remain as CEO after the Transaction|
|(5) Principal Places of Business:||U.S.A. (Pittsburgh), China (Shanghai)|
|(6) Principal Business:||Design, manufacture, sales and aftermarket service of high-speed servo feeding equipment for the metal-forming industry|
|(8) Sales:||US$14.5 million |
(fiscal year ended December 31, 2016)
2. Purpose of the Transaction and Future Operation Policy
Nidec has been actively developing its metal forming machinery business through its subsidiary, Nidec-Shimpo Corporation, which manufactures and sells high precision and high speed press machines under Kyori brand. To strengthen its business, Nidec acquired Nidec Minster Corporation (formerly The Minster Machine Company) in the U.S. in April 2012, and Nidec Arisa S.L.U. (formerly Arisa S.A.) in Spain in August 2015, both of which are leading press manufacturers in the world. Nidec’s press machine business currently operates in three key regions, Asia (Japan and China), the U.S., and Europe to offer best-in-class products and services to its customers.
Vamco exhibits a very strong brand and unparalleled quality in high-speed servo feeding industry, particularly in North America and Asia. With its proprietary motion control technology known as “Quantum”, Vamco has offered unique and advanced technological designs for servo feeding equipment with the highest speed and precision.
Combining the existing press machines with Vamco’s high-speed feeding equipment, Nidec is now capable of offering more comprehensive pressing solutions to the manufacturers of motor lamination, electrical connector, lead frame and metal packaging.
As a result of the Transaction, Nidec will be able to accelerate the growth of its metal forming machinery business with synergies expected from (i) global reach through the combined sales and customer support networks, (ii) broader product offerings, (iii) enhancement of Vamco’s service capability by leveraging Nidec Minster’s globally-reputed customer service competencies, and (iv) new product co-development using Vamco’s world’s-best servo drive technology. The Company also believes that its financial strength and global presence will help lead the business combination to success.
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, 2017. 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 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.
Contact: Masahiro Nagayasu General Manager Investor Relations +81-75-935-6140 firstname.lastname@example.org