Nidec Acquires CIMA S.p.A., an Italian Commercial Motor Manufacturer
KYOTO, Japan, July 03, 2018 (GLOBE NEWSWIRE) -- Nidec Corporation (TSE:6594) (OTC US:NJDCY) (the “Company” or “Nidec”) today announced that it acquired a 100% ownership interest in CIMA S.p.A. (“CIMA”), an Italian commercial motor manufacturer, from its shareholders (the “Transaction”) on July 2, 2018, local time. As a result of the Transaction, CIMA became a consolidated subsidiary of Nidec, as outlined below:
1. Outline of New Subsidiary
| (1 | ) | Company Name: | CIMA S.r.l.(*) |
| (2 | ) | Headquarters: | Vicenza (Italy) |
| (3 | ) | Foundation: | 1977 |
| (4 | ) | Directors: | |
| Director and Chairman, CEO: | Paolo Delpogetto (FIR Elettromeccanica S.r.l., CEO) | ||
| Director: | James Halley (Appliance, Commercial and Industrial Motor Business Unit, CFO of European business) | ||
| Director: | Fabrizio Montoro (FIR Elettromeccanica S.r.l., Operations Manager) | ||
| (5 | ) | Principal Business: | Designs, manufactures and sells commercial motors |
| (6 | ) | Employees: | 54 (as of March, 2018) |
| (7 | ) | Sales | €13.4 million (fiscal year ended December 31, 2017) |
| (8 | ) | Operating Income (**) | €1.7 million (fiscal year ended December 31, 2017) (Operating margin 13.0%) |
| (9 | ) | Net Assets | €9.9 million (fiscal year ended December 31, 2017) |
| (10 | ) | Total Assets | €15.2 million (fiscal year ended December 31, 2017) |
(*)At closing of the Transaction, CIMA has been transformed from a joint stock company (S.p.A., Società per Azioni) into a limited liability company (S.r.l., Società a responsabilità limitata) in order to conduct its management decision making swiftly.
(**) The amount remaining after subtracting one-time expenses or income. Further one-time expenses or income will not occur in the post-acquisition period.
2. Purpose of the Transaction and Future Operation Policy
In line with its continuing initiative to create an optimal business mix, the Company is actively moving forward with the development of new growth platforms with particular emphasis on appliance, commercial and industrial motors and solutions.
Commercial equipment and products have been and will continue to be an important impetus in keeping the initiative on course. Since the acquisition of Kinetek Group Inc. and its subsidiaries, including FIR Elettromeccanica S.r.l. (“FIR”), in November 2012, the Company has added to its product portfolio a new range of pumps and motors for commercial kitchen equipment used for food-service operations including restaurants and canteens (e.g., dishwashers, convection ovens), motors for construction equipment (e.g., cable hoists, ladder hoists, lifts) and pumps, primarily targeted at the European market.
In order to strengthen its commercial motor business in Europe, the Company, setting FIR as a core business platform in Europe, acquired the business of E.M.G. Elettromeccanica S.r.l. (“EMG”) in September 2015, E.C.E. S.r.l. in May 2016 and LGB Elettropompe S.r.l. (“LGB”) in July 2017.
The main products of CIMA are motors used for ventilations and fans for agricultural and industrial purposes. Since there is no overlap between the products of FIR and those of CIMA, the Transaction helps FIR expand its product portfolio. In addition, utilizing FIR’s supply chain and facilities, CIMA will improve its profitability by generating both procurement and cost reduction synergies.
3. Effect on Financial Performance for the Current Fiscal Year
The Transaction is expected to have no significant impact on the Company’s consolidated financial performance for the fiscal year ending March 31, 2019.
Cautionary Statement Concerning Forward-Looking Information
This press release contains forward-looking statements regarding the intent, belief, strategy, plans or expectations of the Nidec Group 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 integrating the acquired business with the Nidec Group, the anticipated benefits of the planned transaction not being realized, changes in general economic conditions, shifts in technology or user preferences for particular technologies, other risks relating to the successful consummation of the planned transaction, and changes in business and regulatory environments. The Nidec Group 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 may be required by law.
Contact:
Masahiro Nagayasu
General Manager
Investor Relations
