 |
|
 |
|
Strategy -M&A- |
 |
|
|
M&A is an Essential Tool to Make our "Dream" Come True.
Nidec has built growth on strong synergies created through the acquisition of 23 companies closely associated with drive technology. This June, Nidec shifted up for faster growth with the establishment of the Corporate Strategy Office, a team of experts on corporate acquisition.
We had an interview with Mr. Juntaro Fujii -Executive Vice President and head of the Corporate Strategy Office- discussing his vision for the M&A unit.
Q. How did this M&A-focused unit come into being?
Mr. Juntaro Fujii, talking in an interview about the role of the Corporate Strategy Office. |
M&A has always been instrumental in the progress of Nidec's flagship motor business, and going forward, it may take place across borders to supplement our skill, experience, and reach. In this light, establishing an M&A-focused organization, I would say, came as a natural extension of our growth strategy. Since inception in 1973, we have sought and acquired companies with world-class technical edges, turned them around, and have leveraged their strength to broaden our technological horizon. All these acquirees are now an integral part of our growth dynamic.
Main M&A Activities | Year | Former Names | Current Names | Main Products | | 1984 | Axial Flow Fan Div. of Torin Corp. (US) | - | Fan Motors | | 1995 | Simpo Industries Co., Ltd | Nidec-Shimpo Corporation | Power transmission equipment | | 1997 | Tosok Corporation | Nidec Tosok Corp. | Auto parts | | 1997 | Read Corporation | Nidec-Read Corp. | Circuit board testers | | 1997 | Kyori Kogyo | Nidec-Kyori Corporation | Highspeed
pressing machines | | 1998 | Copal Co., Ltd | Nidec Copal Corp. | Camera shutters, Camera lends units | | 1998 | Copal Electronics Corporation | Nidec Copal Electronics Corp. | Switches, Trimmer potentiometers | | 1998 | Shibaura Engineering Works Co., Ltd | Nidec Shibaura Corporation | Mid-size motors for home electronic appliances | | 2000 | Y-E Drive Corporation | Nidec Power Motor Corporation | Mid-size motors for industrial equipment | | 2003 | Sankyo Seiki Mfg. Co., Ltd. | Nidec Sankyo Corp. | Small Precision Motors, Industrial Robots | | 2006 | Fujisoku Corporation | 580,000 | Switches |
|
Q. You wrapped up your first M&A deal in October. How will Valeo's Motors & Actuators business ("VMA") contribute to Nidec's automotive business?
If you mean to expand into the automotive part market to any meaningful degree, at some point or another you hit upon the auto industry's high entry thresholds, such as lengthy product development time and heavy emphasis on proven track record. That is the phase we are in now, and I believe VMA will be a breakthrough for us to establish a firmer foothold in this huge market with great growth potential. Today's average car is said to have 50-60 electric motors running inside. And going forward, the number is expected to increase many fold as the auto industry shifts further toward vehicle electronic control systems that cater to the consumers' growing preference for more safety-conscious, fuel-efficient cars. Obviously, sophisticated cars need sophisticated motors. That is where we come in. We expect an effective synergy with VMA will help boost our overall automotive product sales to 100 billion yen toward fiscal 2010.
Valeo's Motors & Actuators (VMA) | Business: | Production of automotive motors | | Products: | Motors for Air-flow System, Auto Closure System, Seat Adjustment System and Brake System | | Location: | Europe, North America, China | | Sales: | 252M euros (38B yen) | | EBITDA: | 26M euros (4B yen) | | Employees: | 1,800 |
(Source: FY2005 consolidated results, unaudited) |
Q. What areas do you consider will be Nidec's future M&A focus?
In tandem with the expansion of production capability and sales channels, we are now working on the internalization of production. In this view, our target areas in the short term may include motor control software, which we largely outsource today. Also, in terms of gaining access to broader market opportunities, we are seeing enormous possibilities in the field of mid- to large-size motors, where applications range from industrial equipment to airplanes.
Q. What does M&A mean to Nidec?
One obvious answer is that it is an essential means of attaining our 2010 sales target of one trillion yen, but that's still half the story. Our M&A planning in any form revolves around our long-cherished dream - becoming the number one drive technology company of the world.
|
|
|