Carlyle has agreed to acquire Nidec Components Corporation from parent company Nidec Corporation, adding an electronic components manufacturer exposed to growth in artificial intelligence and industrial automation.
Founded in 1967, Nidec Components develops, manufactures and sells industrial electronic components including pressure sensors, switches, torque sensors and encoders.
The company has established positions across its markets based on the quality and reliability of its products. Carlyle said demand is also benefiting from longer-term trends including AI and industrial automation.
The transaction forms part of Nidec Corporation’s planned portfolio rationalization and is expected to establish Nidec Components as an independent company.
As a standalone business, Nidec Components is expected to gain additional flexibility around decision-making, growth investments and allocation of resources.
Carlyle plans to work with Nidec Components’ management team to support the company’s next stage of growth, including global expansion, operational improvements and strengthening its organizational structure.
The investment firm plans to draw on its experience across electronic components and industrial technology in Japan, where previous investments have included Rigaku, TOTOKU, Iwasaki Electric and Kyoden.
Carlyle also has experience executing industrial carve-outs globally.
The acquisition further expands Carlyle’s investment activity across the industrial, technology and infrastructure services sectors in Japan.
The transaction remains subject to customary regulatory approvals and other closing conditions.
