Nidec Announces its Execution of a Share Transfer Agreement on Linear Transfer Automation Inc. and its Two Related Companies, Canadian-based Press Room Equipment Manufacturer

Rhea-AI Summary

Nidec (TOKYO: 6594; OTC US: NJDCY) has announced its decision to acquire Linear Transfer Automation Inc., Linear Automation USA Inc., and Presstrader , collectively known as 'Linear', on October 1, 2024. Linear, a Canadian-based company, specializes in manufacturing, sales, and service for press peripheral equipment. With 90 employees and sales of 39.6 million CAD in FY2023, Linear serves major automobile manufacturers and Tier 1 and 2 suppliers.

This acquisition aims to enhance Nidec's Press & Automation Machine Business, which reported sales of 66.7 billion yen in FY2024. The synergies expected include offering total system solutions, expanding sales through cross-selling, and deploying Linear's products globally using Nidec's infrastructure. The transaction is not expected to significantly impact Nidec's consolidated financial performance for the fiscal year ending March 31, 2025.

Positive

• Acquisition of Linear expands Nidec's press peripheral equipment portfolio
• Potential for increased sales through cross-selling opportunities
• Expansion into North American market with Linear's strong customer base
• Ability to offer complete press line solutions to customers
• Opportunity to deploy Linear's products globally using Nidec's infrastructure

Negative

• None.

KYOTO, Japan--(BUSINESS WIRE)-- Nidec Corporation (TOKYO: 6594; OTC US: NJDCY) (the “Company” or “Nidec”) announced today that its Board of Directors has approved a resolution to acquire the share of Linear Transfer Automation Inc., Linear Automation USA Inc., and Presstrader Limited, privately-owned Canadian companies (collectively the “Linear”), from its shareholders (the “Transaction of share”) on September 27, 2024 (Japan time). The Company executed an agreement on the Transaction of share on September 30, 2024 (Canada time). The Transaction of share will be executed on October 1, 2024 (Canada time).

Nidec’s Press & Automation Machine Business Sales (Graphic: Business Wire)

1. Outline of the New Subsidiary
(1)	Company name	(i)	Linear Transfer Automation Inc.
		(ii)	Linear Automation USA Inc.
		(iii)	Presstrader Limited.
(2)	Headquarters	Barrie, Ontario, Canada
(3)	Established	1994
(4)	Business leader	Rama Jayaweera
(5)	Business base	Canada, United States
(6)	Principal of businesses	Manufacturing, sales and service for press peripheral equipment
(7)	Number of employees	90 (Consolidated)
(8)	Sales	39.6 million CAD (approximately 4.4 billion yen) The fiscal year ended September, 2023

2. Linear’s Strengths
Linear is based in Ontario, Canada, and is a company that engineers, manufactures, integrates and provides services for in-line parts/material transfer and post-process automation equipment in the metal forming press room process. Linear’s main customers are major automobile manufacturers and Tier 1 and 2 suppliers, and Linear is supported by not only North American manufacturers but also major Japanese manufacturers for its technology, quality, and service. They also have strong ties with a wide range of other sectors in the North American market, including manufacturers of building materials and appliance.

3. Nidec’s Press & Automation Machine Business
(1)	Company name	Nidec Minster, Nidec Drive Technology (Kyori press-machine), Nidec Arisa, Nidec Vamco, Nidec SYS, Nidec CHS, Nidec Automatic Feed
(2)	Sales	The fiscal year ended March 31, 2024	66.7 billion yen
(3)	Products	Small high-speed presses, medium-sized presses, large presses, peripheral equipment
(4)	Manufacturing sites	Japan, China, U.S.A., Mexico, Germany, Spain
(5)	Number of employees	Approx. 1,400

4. Synergies with Our Group
Through our Nidec Press & Automation Businesses, we have expanded our press machine manufacturing, sales, and service business globally, as well as increased our lineup of presses and peripheral equipment products with M&As.
With the addition of Linear, we will be able to offer a wide range of products and services to our customers and pursue following synergies in terms of products, sales, and technology.

(1)	As a comprehensive Press and Automation group, we are able to provide total system solutions by adding peripheral equipment for pre- and post-processing to the press machine itself and selling complete press lines to customers.
(2)	Sales expansion will be possible by selling our presses and peripheral equipment to Linear’s customers, and also by selling Linear’s products to our customers.
(3)	Linear’s products can be deployed to Europe and Asia markets utilizing Nidec’s global sales, service and manufacturing bases, which will enable shorter delivery times while also enabling us to improve the level of customer service in each region.

5. Effect on Financial Performance for the Current and Next Fiscal Year
The transaction is expected to have no significant impact on the Company’s consolidated financial performance for this fiscal year ending March 31, 2025. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240930707546/en/

Teruaki Urago

General Manager

Investor Relations

+81-75-935-6140

ir@nidec.com

Source: Nidec Corporation

FAQ

When will Nidec (NJDCY) complete the acquisition of Linear Transfer Automation Inc.?

Nidec will complete the acquisition of Linear Transfer Automation Inc. and its related companies on October 1, 2024 (Canada time).

What are the sales figures for Linear Transfer Automation Inc. acquired by Nidec (NJDCY)?

Linear Transfer Automation Inc. reported sales of 39.6 million CAD (approximately 4.4 billion yen) for the fiscal year ended September 2023.

How many employees does Linear Transfer Automation Inc. have after being acquired by Nidec (NJDCY)?

Linear Transfer Automation Inc. and its related companies have a total of 90 employees (consolidated) as reported in the acquisition announcement.

What are the expected synergies from Nidec's (NJDCY) acquisition of Linear Transfer Automation Inc.?

The expected synergies include offering total system solutions, expanding sales through cross-selling, and deploying Linear's products globally using Nidec's infrastructure.