Nidec To Buy Emerson Electric's Motors, Drives, Electric Power Generation Units

(RTTNews) - Nidec Corp. announced Tuesday that its Board of Directors has approved a resolution to acquire the motors, drives and electric power generation businesses of Emerson Electric Co.

For this purpose, Nidec entered into an asset and stock purchase agreement on August 2.

Through these acquisition initiatives, Nidec said it has gained extensive geographic reach and product lineups which complement the Company's existing operations, essential in increasing the breadth and depth of its industrial and commercial business.

In line with this strategy, the Transaction enables Nidec to further enhance its industrial and commercial business and significantly grow Nidec's scale in this market so that Nidec can flexibly meet its customers' increasing needs.

The company said the business has experienced a cyclical decline in recent performance as a result of the significant drop in oil prices and weak macro-economic conditions.However, Nidec expects the Business to grow as the cycle recovers and as synergies are realized in the mid- to long-term perspective. Expected synergies include:

Nidec said it plans to continue to expand its business into the market for new-generation motion control, automated guided vehicle), and robotics, taking advantage of the Business' full range of servo motors and gears.

Looking ahead, for fiscal year ending Mach 31, 2017, Nidec expects attributable net income of 98 billion yen and sales of 1.25 trillion yen, higher than last year's 90.12 billion yen and 1.178 trillion yen, respectively.