TOKYO (Reuters) - Japan's Nidec Corp (T:6594) said it would buy U.S. Emerson Electric Co's (N:EMR) motors and electric power generation unit for $1.2 billion, seeking to expand its industrial and commercial businesses as the market for consumer goods such as smartphones and laptops slows.
The purchase of Leroy-Somer builds on Nidec's previous acquisitions of a separate Emerson motor-related business in 2010 as well as industrial motors maker Ansaldo Sistemi Industriali S.p.A. and two other businesses in 2012.
Leroy-Somer has been designing and manufacturing motors and alternators for the nuclear industry for more than 40 years, according to the company's website.
Highly acquisitive Nidec said the business has a solid customer base, particularly in Europe and North America. The business booked sales of $1.67 billion in the year through September, down from the previous year's $1.99 billion.
Private equity group Clayton Dubilier & Rice (CD&R), Wolong Electric and another Chinese company had shown interest in bidding for Leroy-Somer, people with knowledge of the matter had said.