Nidec Corporation (TSE: 6594; OTC US: NJDCY) today announced that it has finalized an agreement to acquire Linear Transfer Automation Inc., Linear Automation USA Inc., and Presstrader Limited, three privately-owned Canadian companies (collectively “Linear”). The deal was approved by Nidec’s Board of Directors on September 27, 2024, and the share transfer will officially take place on October 1, 2024.
Linear’s Expertise
Based in Ontario, Canada, Linear specializes in the engineering, manufacturing, and integration of automated equipment for material handling and post-process operations within metal forming press rooms. Their key clients include major automobile manufacturers and suppliers in North America, with additional support from Japanese manufacturers who value their high-quality technology and services. Linear also serves a variety of industries, including building materials and home appliances.
Strategic Synergies
The acquisition strengthens Nidec’s global footprint in the press and automation sectors, leveraging Linear’s capabilities to enhance its offerings. Through its Nidec Press & Automation business, Nidec has already expanded its presence in press machine manufacturing, sales, and services.
The integration of Linear provides Nidec with several strategic benefits. By combining its existing press machines with Linear’s peripheral equipment, Nidec can now offer comprehensive press line systems that cover both pre- and post-process automation.
This synergy is expected to drive sales growth, as it will introduce Linear’s products to its current customers while also offering its own press machines to Linear’s clients. Additionally, Linear’s product range will be distributed in European and Asian markets through Nidec’s extensive global network, enabling shorter delivery times and enhanced customer service in these regions.
Impact on Financials
The company expects the acquisition to have minimal impact on its consolidated financial performance for the fiscal year ending March 31, 2025. The company will provide further updates if necessary, in compliance with Tokyo Stock Exchange regulations.
Founded in 1973 in Kyoto, Japan, the company is a global leader in motor manufacturing. The company pioneered the commercialization of direct drive spindle motors for hard disk drives (HDDs) in 1979, using brushless DC motor technology. Today, it employs over 100,000 people worldwide and operates more than 300 subsidiaries.
Its annual sales exceed $13 billion, with products used in various industries, including consumer electronics, home appliances, automobiles, and industrial automation. This acquisition reinforces Nidec’s commitment to innovation and its ambition to become a global leader in automation and motor-driven systems.
