Nidec to Acquire Mitsubishi Heavy Industries Machine Tool Co., Ltd.

KYOTO, Japan, Feb. 05, 2021 (GLOBE NEWSWIRE) -- Nidec Corporation (TSE: 6594; OTC US: NJDCY) (the “Company” or “Nidec”) announced today that its Board of Directors has approved a resolution to acquire: the shares of Mitsubishi Heavy Industries Machine Tool Co., Ltd. (“Mitsubishi Heavy Industries Machine Tool”), a company that designs, manufactures, and sells machine tools, cutting tools, and related products, from Mitsubishi Heavy Industries, Ltd. (“Mitsubishi Heavy Industries”); all the Mitsubishi Heavy Industries Group-owned shares of three overseas subsidiaries specialized in machine tool business; and the machine tool business run by nine overseas subsidiaries (the “Stock Acquisition”). Accordingly, Nidec entered into a stock purchase agreement on February 5, 2021 (Japan time).

1. Outline of Mitsubishi Heavy Industries Machine Tool

(1)	Company Name:	Mitsubishi Heavy Industries Machine Tool Co., Ltd.
(2)	Headquarter:	130, Roku-jizo, Ritto, Shiga, 520-3080, Japan
(3)	Foundation:	October 1, 2015
(4)	Capital:	JPY 3 billion
(5)	Director:	Kenichi Wakabayashi, President and CEO (with positions remaining unchanged after the Stock Acquisition)
(6)	Production Bases:	Japan (Ritto, Shiga), USA, China, and India
(7)	Principal Businesses:	A) Design, manufacture, sales and consulting services associated with machine tools, cutting tools, and other related products B) Installation, technical guidance, and after-sales services related to the above products
(8)	Number of Employees:	Approximately 1,400 (as of April 2020)
(9)	Sales:	JPY 40.3 billion (fiscal year ended March 31, 2020)  JPY 23.1 billion (estimated, fiscal year ending March 31, 2021)

2. Purpose of the Stock Acquisition

The acquisition of machine tool business achieves a mutual complement with our existing businesses. Nidec has been actively engaged in manufacture, sales and services associated with reduction gearboxes and pressing machines through its subsidiary, Nidec-Shimpo Corporation. After completion of the acquisition, Mitsubishi Heavy Industries Machine Tool will become the Nidec-Shimpo’s third main business. Furthermore, we expect utilizing Mitsubishi Heavy Industries Machine Tool’s technology for our future insourcing plan. The Company is expecting further demand increase for E-Axle, the electric vehicle traction unit that Nidec is most focused on at present. Thus, as the Company aims to expand the sales of this product which combines a motor, an inverter and a reducer, it is imperative for us to strengthen manufacturing capabilities of gears, the core component of the traction unit. In this regard, this latest Stock Acquisition will serve as an important effort to help the Company acquire personnel who are well-versed in the development of gears of Mitsubishi Heavy Industries Machine Tool and these people’s high technological skills in line with the Nidec Group’s strategy for electric vehicle traction unit.