Nidec Completes Acquisition of Houma Armature Works, a US-based Motor and Generator Service Provider
Nidec Completes Acquisition of Houma Armature Works, a US-based Motor and Generator Service Provider
KYOTO, Japan–Nidec Corporation (TOKYO:6594; OTC US:NJDCY) (the “Company” or “Nidec”) today announced that it has acquired full ownership of TAR, LLC d/b/a Houma Armature Works, a privately- owned US company (“Houma”), from its founding family, through the Company’s subsidiary, Nidec Motor Corporation (“NMC”), on July 3, 2023 (US time) (the “Transaction”). As a result of the Transaction, Houma became a consolidated subsidiary of Nidec, as outlined below:
1. Outline of the New Subsidiary
(1)Company name TAR, LLC d/b/a Houma Armature Works
(2)Headquarters Houma, Louisiana, United States
(3)Foundation 1972
(4)Business leader Corey Hansen, VP Service/Aftermarket Electric Power Generation Americas
Roy Corbitt, the General Manager, Houma
(5)Business bases Manufacturing and service bases: Houma, Louisiana, Houston, Texas
(6)Principal businesses Manufacturing, repair, maintenance, upgrades, and installation services for motors, generators, and control systems.
(7)Number of employees 94
(8)Sales The fiscal year ended December 31, 2022
31.4 million USD
(approximately 4.13 billion yen)
2. Houma’s Strengths
Houma is a service partner which remanufactures motors and generators and provides field service to oil and gas producers, operating out of Louisiana and Texas. The end-users they service work are on- and off-shore drilling, marine and wind renewable energy power generator manufacturers, including Kato Engineering, Leroy-Somer, and US Motors, all of which are under the Nidec umbrella. In addition to providing high quality services for various motor manufacturers, Houma has bases near the most active oil and gas extraction areas in United States and Mexico and offers speedy services to many of the largest oil and gas producers.
3. Purpose of Transaction and Future Operation Policy
NMC has endeavored to position itself as a major player in the North American generator space by not only designing and selling competitive products, but by also continuously improving its strong service offering. The acquisition of Houma is part of NMC’s strategy to be competitive in both product and aftermarket spaces to accelerate profitable growth. Through this acquisition, NMC will be able to enhance its service offering, including expanding its share within its own U.S. installed base, and Houma will be able to provide services to NMC’s customers.
4 . Effect on Financial Performance for the Current and Next Fiscal Year
The transaction is expected to have no significant impact on the Company’s consolidated financial performance for this fiscal year ending March 31, 2024. 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.
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