KYOTO, Japan, March 5, 2012 (GLOBE NEWSWIRE) -- Nidec Corporation (NYSE:NJ) (the "Company") today announced that Nidec Shimpo Corporation ("Nidec Shimpo"), a wholly owned subsidiary of the Company and a leading manufacturer of precision speed reducers, has agreed with the shareholders of The Minster Machine Company ("Minster"), a leading U.S. manufacturer of press machines with an operating history of over 110 years, to acquire all of the outstanding shares in Minster (the "Transaction"), and that Nidec Shimpo has entered into a share purchase agreement with the shareholders of Minster on March 5, 2012.
1. Purpose of the Transaction
In July 2011, the Company transferred its ownership interest in Nidec-Kyori Corporation ("Nidec-Kyori"), a manufacturer of press machines, to Nidec Shimpo and, as a result, Nidec-Kyori became a wholly owned subsidiary of Nidec Shimpo.
Nidec-Kyori sells its products primarily to manufacturers of electronic parts, including connectors, and is particularly strong in the small-sized high speed precision press machine markets (15 ton to 200 ton capacities) in Japan and China. Minster manufacturers medium-sized and large-sized high speed precision press machines (10 ton to 1,650 ton capacities), and sells its products to a broad range of customers, including manufacturers of electronic parts, motors and food packaging machines. Minster sells products in 80 countries and especially has a strong presence in the press machine market in North and South America and a substantial global market share as a leading manufacturer of press machines for food and beverage cans.
Following the Transaction, Nidec Shimpo aims to (1) increase sales by selling Minster's large-sized press machines through Nidec Shimpo's (and Nidec-Kyori's) sales channels in Asia and by selling Nidec-Kyori's small-sized high speed precision press machines through Minster's sales channels in North and South America and Europe, (2) expand product offerings by using Nidec-Kyori's small-sized high speed precision press technology and Minster's large-sized high rigidity precision press technology as mutually supplementary technologies, and (3) share manufacturing facilities and equipment with Minster.
As a result of the Transaction, the Company is expected to have, within its group of companies, a more comprehensive precision press machine manufacturer with product offerings ranging from small-sized high speed press machines to large-sized high rigidity press machines.
2. Information on Minster
(1) Company Name: The Minster Machine Company (2) Headquarters: Minser, Ohio, United States (3) Year of Establishment: 1901 (4) Principal Places of Business: United States (Minster), Germany (Halblech), and China (Zhejiang) (5) Principal Businesses: Development, manufacturing and sale of large-sized high speed precision press machines and dies (6) Employees: Approximately 500 (7) Sales in Fiscal Year 2011: 118 million USD (unaudited)
3. Structure of the Transaction
Nidec Shimpo is expected to purchase from the shareholders of Minster all of the outstanding shares in Minster.
4. Current Schedule
The closing of the Transaction is currently expected to be completed in early April 2012. The closing date may change, depending on the timing of obtaining required regulatory approvals and other factors.
5. Effect on Financial Performance for the Current Fiscal Year
The Transaction is expected to have no impact on the Company's consolidated financial performance for the current fiscal year since the closing of the Transaction is currently expected to be completed in early April 2012.
The impact of the Transaction on the Company's consolidated financial performance for the next fiscal year is currently being reviewed, and the Company intends to make appropriate disclosure in accordance with the rules of the Tokyo Stock Exchange once details are determined.
Cautionary Statement Concerning Forward-Looking Information
This press release contains forward-looking statements regarding the intent, belief, strategy, plans or expectations of the Company, its group companies 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 completing the planned transaction, the anticipated benefits of the planned transaction not being realized, shifts in technology or user preferences for particular technologies, whether and when required regulatory approvals are obtained, and changes in economic environments. The Company 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 required by law.
Masahiro Nagayasu Senior General Manager Investor Relations +81-75-935-6140 firstname.lastname@example.org