Nidec Corporation (TOKYO: 6594; OTC US: NJDCY) (the “Company” or “Nidec”) announced today that it passed a resolution in the meeting of the Board of Directors held on March 15, 2023 (Japan time) on the purchase by Nidec Copal Electronics Corporation, a subsidiary of the Company, of all the shares of Midori Precisions Co., Ltd. (“Midori Precisions”), a company that develops, manufacturers, and sells potentiometers and other electronic components (the “Stock Acquisition”), and executed a transfer agreement on the Stock Acquisition, etc. on March 15, 2023 (Japan time).
1. Outline of the company to be acquired
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(1) |
Company name |
Midori Precisions Co., Ltd. |
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(2) |
Headquarters |
The city of Hamura, Tokyo |
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(3) |
Foundation |
July 1952 |
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(4) |
Director |
Hitoshi Ohira, Representative Director and President (who will be dispatched from Nidec Copal Electronics) |
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(5) |
Business bases |
Tokyo (headquarters and factory) and Osaka (sales) |
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(6) |
Principal businesses |
Development, manufacturing, and sale of potentiometers and encoders |
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(7) |
Number of employees |
Approximately 130 (as of March 2023) |
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(8) |
Sales |
Fiscal year ended March 31, 2022 |
2.788 billion yen |
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(9) |
Operating profit |
Fiscal year ended March 31, 2022 |
495 million yen |
2. Purpose of the Stock Acquisition and management policies going forward
Nidec Copal Electronics Corporation (“Nidec Copal Electronics”), founded in 1967, is an electronic component manufacturer that, among other activities, develops, manufacturers, and sells switches, semi-fixed resistors, pressure sensors, potentiometers, encoders, small precision motors, polygon mirrors, and other products. Having joined the Nidec Group in 1998, Nidec Copal Electronics is focused on its sensing business at present, actively engaging in the transformation of its business portfolio and entry into growth markets. With, among other achievements, record-high consolidated net sales (35.3 billion yen) and operating profit in the fiscal year ended March 31, 2022, Nidec Copal Electronics has long been growing constantly by utilizing synergies with other Nidec Group companies and implementing other measures.
With no overlaps in the potentiometer and encoder product lineup between them, Midori Precisions and Nidec Copal Electronics will be able to generate synergies easily with each other, and expand sales together. In addition, bringing together the two companies’ development resources will likely create synergies for them in the area of new product development.
Not only will the Stock Acquisition enable the use of Midori Precisions’ technological strength and Nidec Copal Electronics’ production and manufacturing technologies and global sales channels to create synergies, it will ensure investment in Midori Precisions in a timely and appropriate manner. Thus, the two companies will be able to make the position sensing (i.e. potentiometer and encoder) business a new pillar of the Nidec Copal Electronics group’s sensing businesses, and walk the road to future prosperity together, while, amid the growing demand for sensors around the world, engaging in corporate business activities to contribute to social growth.
3. Effect on Financial Performance for the Current and Next Fiscal Year
The Stock Acquisition is expected to have no significant impact on the Company’s consolidated financial performance for this fiscal year ending March 31, 2023. 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.
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