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Nidec, the Japanese electric motor maker, announced that it acquired PAMA, an Italian machine tool manufacturer, and its nine affiliate companies. Nidec passed the resolution to acquire the shares of PAMA on November 28, and executed a transfer agreement on the Stock Acquisition on November 30.
The deal is estimated to be worth 15 billion yen, or $108 million, according to reporting from Nikkei Asia. PAMA brought in over $124 million (118.3 million Euro) in sales in 2021 and has production bases in Italy and China.
Nidec has been recently entering into the machine tool business with two prior acquisitions. In August 2021, Nidec purchased Mitsubishi Heavy Industries Tool Co., now Nidec Machine Tool Corporation. And earlier this year it acquired the shares of OKK Corporation, now Nidec OKK Corporation, through a third-party allocation of common shares.
Nidec primarily builds hard disk drives for computers, home appliance motors and traction motors for electric vehicles, but it hopes its acquisition of PAMA can help build synergy between its already-acquired machine tool manufacturers’ product range, scale, development and manufacturing. PAMA can help the company expand its sales in Asia, Europe and America, where it already has footholds.
PAMA can also combine its technical expertise with Nidec Machine Tool Corporation’s and Nidec OKK Corporation’s expertise to develop new products and components. In particular, PAMA’s lineup of milling and boring machines and large machine tools will complement Nidec’s existing offerings.
Nidec also predicts that with the combination, it can optimize its global production in Europe, the U.S. and Asia, which will reduce lead time for delivery and reduce manufacturing costs. Although, Nidec doesn’t expect the acquisition to have a significant impact on its financial performance for the fiscal year ending in March 2023.