Nidec Executes Stock Transfer Agreement on Nidec Copal Electronics’ Acquisition of Midori Precisions

Rhea-AI Summary

Nidec Corporation (NJDCY) announced the acquisition of Midori Precisions Co., Ltd. through its subsidiary, Nidec Copal Electronics, on March 15, 2023. Midori Precisions specializes in the development and manufacture of potentiometers and electronic components and reported sales of 2.788 billion yen with an operating profit of 495 million yen for the fiscal year ending March 31, 2022. This acquisition is expected to create synergies in product development and enhance sales resources, contributing to Nidec’s growth strategy in sensing technologies. The financial impact for Nidec's current fiscal year is not expected to be significant.

Positive

• Acquisition expected to create synergies between Nidec Copal Electronics and Midori Precisions in product development.
• Midori Precisions adds a new pillar to Nidec's sensing business, which is experiencing growing demand.

Negative

• None.

KYOTO, Japan--(BUSINESS WIRE)-- 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

(1)	Company name	Midori Precisions Co., Ltd.
(2)	Headquarters	The city of Hamura, Tokyo
(3)	Foundation	July 1952
(4)	Director	Hitoshi Ohira, Representative Director and President (who will be dispatched from Nidec Copal Electronics)
(5)	Business bases	Tokyo (headquarters and factory) and Osaka (sales)
(6)	Principal businesses	Development, manufacturing, and sale of potentiometers and encoders
(7)	Number of employees	Approximately 130 (as of March 2023)
(8)	Sales	Fiscal year ended March 31, 2022	2.788 billion yen
(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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230314006101/en/

Masahiro Nagayasu

General Manager

Investor Relations

+81-75-935-6140

ir@nidec.com

Source: Nidec Corporation

FAQ

What is the date of Nidec's acquisition announcement for Midori Precisions?

Nidec announced the acquisition on March 15, 2023.

What is the financial impact of the Midori Precisions acquisition on Nidec's current fiscal year?

The acquisition is expected to have no significant impact on Nidec's consolidated financial performance for the fiscal year ending March 31, 2023.

What products does Midori Precisions manufacture?

Midori Precisions develops and manufactures potentiometers and other electronic components.

What are the expected benefits of Nidec acquiring Midori Precisions?

The acquisition is expected to generate synergies in product development and expand sales channels for both companies.

What is the sales figure for Midori Precisions for the fiscal year ended March 31, 2022?

Midori Precisions reported sales of 2.788 billion yen for the fiscal year ended March 31, 2022.