KYOTO, Japan, July 04, 2017 (GLOBE NEWSWIRE) -- Nidec Corporation (TSE:6594) (OTC US:NJDCY) (the “Company” or “Nidec”) today announced that it acquired a 100% ownership interest in LGB Elettropompe S.r.l. (“LGB”), an Italian commercial pump and motor manufacturer, from the shareholders on July 3, 2017, local time (the “Transaction”). As a result of the Transaction, LGB became a consolidated subsidiary of Nidec, as outlined below:
1. Outline of New Subsidiary
|(1||)||Company Name:||LGB Elettropompe S.r.l.|
|Director and Chairman, CEO:||Paolo Delpogetto |
|(FIR Elettromeccanica S.r.l., CEO)|
|Director and General Manager:||Giorgio Lovisetto|
|(former CEO of LGB)|
|Director:||James Halley |
|(Appliance, Commercial and Industrial Motor Business Unit, CFO)|
|(5||)||Principal Business:||Designs, manufactures and sells pumps for commercial dishwashers and motors for convection ovens|
|(6||)||Employees:||41 (as of May 31, 2017)|
|(7||)||Sales:||€9.8 million (fiscal year ended December 31, 2016)|
2. Purpose of the Transaction and Future Operation Policy
In line with its continuing initiative to create an optimal business mix, the Company is actively moving forward with the development of new growth platforms with particular emphasis on automotive, appliance, commercial and industrial motors and solutions.
Commercial equipment and products have been and will continue to be an important impetus in keeping the initiative on course. Since the acquisition of Kinetek Group Inc. and its subsidiaries, including FIR Elettromeccanica S.r.l. (“FIR”), in November 2012, the Company has added to its product portfolio a new range of pumps and motors for commercial kitchen equipment used for food-service operations including restaurants and canteens (e.g., dishwashers, convection ovens), motors for construction equipment (e.g., cable hoists, ladder hoists, lifts) and pumps, primarily targeted at the European market.
In order to strengthen its commercial motor business in Europe, the Company, setting FIR as a core business platform in Europe, acquired the business of E.M.G. Elettromeccanica S.r.l. (“EMG”) in September 2015 and E.C.E. S.r.l. in May 2016.
LGB, along with FIR, is a well-recognized manufacturer of high-quality pumps for commercial dishwashers and motors for convection ovens in Italy. Through the Transaction, the Company has obtained LGB’s customer base that includes international customers FIR did not have access to. It will be another foothold for FIR to increase its presence in the European commercial food equipment market.
Furthermore, the Company also expects LGB to utilize procurement and production synergies with the FIR’s supply chain in terms of both procurement efficiency and cost reductions.
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, 2018. 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