Nidec Corp. announced that it has completed its acquisition of the motors, drives and electric power generation businesses of Emerson Electric. The $1.2 billion deal, which was first announced last August, includes Leroy-Somer Holding, Control Techniques Limited, Emerson Industrial Automation USA, Kato Engineering Inc., Emerson Industrial Automation Electric and Power Generation Private Limited. Remaining acquisitions, including Leroy Somer Electro-Technique (Fuzhou) Co., Ltd., are scheduled to be completed by Sept. 30, Nidec said.
Nidec said in a statement that it has been actively developing a new growth platform with particular focus on industrial and commercial businesses. In line with this strategy, this transaction enables Nidec to further enhance and expand its industrial and commercial businesses. “The acquired business has a strong brand, solid business foundation and excellent customer base, particularly in Europe and North America,” the company said. “Nidec expects to accelerate the Acquired Business’s growth with expected synergies including 1) complementary product fit with full lineup in industrial products and geographic fit and 2) enhancement of proposal to customers by combining the Acquired Business’s drives with Nidec’s existing products.”
Leroy-Somer, based in France, and Control Techniques, based the United Kingdom, have approximately 9500 employees around the world. For more than 30 years, it has been a global manufacturer and supplier of alternators, drives and motors, with a combined fiscal year 2015 revenue of approximately $1.7 billion.
“This transaction marks another step in our strategic portfolio repositioning to align our businesses for long-term growth,” said Emerson Chairman and Chief Executive Officer David N. Farr. “With the sales of Leroy-Somer, Control Techniques and Network Power, we have further strengthened our balance sheet so we can continue to acquire valuable assets that enhance the ability of our global business platforms to serve our customers.”
Most of the acquired companies will be renamed following the acquisition. Leroy-Somer Holding becomes Nidec Leroy-Somer Holding. Control Techniques Limited is now Nidec Control Techniques Limited. Emerson Industrial Automation USA is now Nidec Industrial Automation USA. Emerson Industrial Automation Electric Power Generation Private Limited becomes Nidec Industrial Automation India Limited. Only Kato Engineering, the Minnesota, USA-based manufacturer of large ac generators, motor-generator sets and controls for prime, standby and peak shaving power generation, remains unchanged.
“We believe that the transaction will accelerate the company’s growth by integrating significant technological capabilities, strong brands and excellent customer bases of both Nidec and the acquired business, and contribute towards achieving its mid-term growth strategy target of ¥2 trillion (US$17.6 billion) in sales in fiscal year ending March 2021,” Nidec’s statement said.