Thu, 12/11/2014 - 00:00

KYOTO, Japan (Dec. 11, 2014) – Nidec Corporation has announced that it has agreed to acquire 100 percent of the shares of Gerate- und Pumpenbau GmbH Dr. Eugen Schmidt (GPM) from its shareholders through Nidec’s subsidiary, Nidec Motors & Actuators (Germany) GmbH (NMA(G)). For this purpose, Nidec entered into a share purchase and transfer agreement with each of GPM's shareholders. Nidec Group has actively engaged in acquisitions of automotive motor businesses as one of its priority areas, such as the acquisition of the Motors & Actuators business (currently, Nidec Motors & Actuators) from Valeo S.A. in December 2006; Jiangsu Kaiyu Auto Appliance Co., Ltd. (currently, Nidec Kaiyu Auto Electric (Jiangsu) Co., Ltd.) in December 2012; Mitsubishi Materials C.M.I. Corporation (currently, Nidec Sankyo CMI Corporation) through Nidec Sankyo Corporation in January 2014; and Honda Elesys Co., Ltd. (currently, Nidec Elesys Corporation) in March 2014. GPM, the subject company of the share purchase agreement, is an automotive pump Tier 1 suppliers in the European market. It develops, manufactures and sells water pumps, oil pumps and module pumps mainly in Europe. Under the current global trend to strengthen the regulations of CO2 emissions, automotive OEMs are focusing more on developing and producing idling-stop vehicles, hybrid vehicles and electric vehicles. With this background, a significant expansion in demand is expected for mechanical variable water pumps, electrical water pumps (EWP) and electrical oil pumps (EOP), both of which utilize electric motors. With regard to EOPs, Nidec Tosok Corporation, a subsidiary of Nidec, currently markets with Nidec's motors. The company expects to further expand its electrical pump business by combining its motor technology with GPM’s pump technology. In addition, Nidec aims to maximize synergies in making power-pack-type electrical pumps by utilizing electronic control technology of Nidec Elesys Corporation in a trend towards electrification. Through this transaction, Nidec expects to further transform its business model from one based solely on motors to one based on modularization and systematization and to accelerate its shift to high value-added businesses. The transaction is planned to close by February 2015, but the closing date may change depending on the status of approvals to be obtained from authorities and other factors. Nidec intends to make appropriate disclosure of the impact of the transaction on its consolidated financial performance for the current fiscal year and announce any changes to its financial performance forecasts in accordance with the applicable rules of the Tokyo Stock Exchange and the New York Stock Exchange once such details are determined.