KYOTO, Japan (Aug. 02, 2016)—Nidec Corporation announced that its Board of Directors has approved a resolution to acquire the motors, drives and electric power generation businesses of Emerson Electric Co. For this purpose, Nidec entered into an asset and stock purchase agreement on Aug. 2, 2016 (US time). The purchase price is $1.2 billion (on a cash and debt-free enterprise value basis) and the consideration will be all cash. Nidec has been actively developing a new growth platform with particular focus on industrial and commercial business. As part of this strategy, Nidec has pursued acquisitions of strategic businesses that enhance its new growth platform. In February 2010, Nidec acquired Motors & Controls business, currently Nidec Motor Corporation (NMC), from Emerson. In order to further strengthen Nidec’s industrial and commercial business, centered on NMC, Nidec acquired Ansaldo Sistemi Industriali S.p.A. (currently Nidec ASI S.p.A.), a manufacturer of large industrial motors, drives and generators, in June 2012. Subsequently in September 2012, Nidec also acquired Avtron Industrial Automation Inc., a manufacturer of industrial encoders, and Kinetek Group Inc., a manufacturer of commercial motors. Through these acquisition initiatives, Nidec has gained extensive geographic reach and product lineups that complement the company’s existing operations, essential in increasing the breadth and depth of its industrial and commercial business. In line with this strategy, the Aug. 2 Emerson transaction enables Nidec to further enhance its industrial and commercial business and significantly grow Nidec’s scale in this market so that Nidec can flexibly meet its customers’ increasing needs. The motors, drives and electric power generation businesses of Emerson Electric Co. has a strong brand, solid business foundation and excellent customer base, particularly in Europe and North America. The Emerson business has experienced a cyclical decline in recent performance as a result of the significant drop in oil prices and weak macro-economic conditions; however, Nidec expects the business to grow as the cycle recovers and as synergies are realized in the mid- to long-term perspective.