Nidec Corporation announced Wednesday that the company has passed a resolution to purchase the shares of Italian machine tool manufacturer PAMA and its nine affiliates on Nov. 28.
The company executed a transfer agreement on the stock acquisition on Nov. 30, as outlined below:
Rovereto, Trentino-Alto Adige, Italy
Director: Alessandro Batisti, general manager
Production bases: Italy, China
Number of employees: approximately 430
Sales: Fiscal year ended December 31, 2021: 118.3 million euro
The company entered into the machine tool business on a full scale after purchasing Mitsubishi Heavy Industries Machine Tool Co., Ltd. (currently, Nidec Machine Tool Corporation) in August last year, and purchasing the shares of OKK Corporation (currently Nidec OKK Corporation) through a third-party allocation of common shares in February. With the latest purchase of PAMA, the company will be able to accelerate the generation of synergies with its existing two machine tool manufacturers in the product range, as well as product sale, development and manufacturing.
PAMA is one of the most well-known companies in the machine tool industry for the wide range of product lineup and the high-level technological capabilities of its large machine tools, particularly boring and milling machines. The company is also known for its solid sales and service networks in Europe and other places such as China, the U.S., and India.
Nidec Machine Tool Corporation and Nidec OKK Corporation, whose main products are gear cutting machines, large machine tools and machining centers, have been in need of further developing the multitasking and 5-axis machining technology as well as expanding its lineup of boring and milling machines in the large machine tools space. Also, both companies’ main sales area has been in Japan and, compared with other major Japanese machine tool manufacturers, both companies have generated less sales from overseas markets such as European and American markets and Chinese market, where the future growth is expected.
Following completion of the acquisition of PAMA, through reciprocal usage of management resources between PAMA and the two machine tool companies, the Nidec Group intends to pursue synergies in all the areas of sale, manufacturing, and product development, including:
- Expanding sales in the Asian, European and American markets based on a wide range of product lineup and cross-selling;
- Developing new products and components by combining the companies’ technological expertise; and
- Reducing lead time for delivery and manufacturing cost based on a global production optimization in Europe, the US, and Asia.
After completing the acquisition, the company will actively provide PAMA with resources and make necessary investments in PAMA to accelerate the growth of Nidec’s machine tool business, which will contribute to the development of the machine tool market on a global scale.
The acquisition is expected to have no significant impact on the company’s consolidated financial performance for this fiscal year ending March 31, 2023. If necessary, the company will make additional disclosure on a timely basis in accordance with the rules of the Tokyo Stock Exchange upon determination of further details.