Carlyle buys Nidec's electronic components arm for ~$650M
What's the deal? NidecDealroom has a profile for this one. Try Dealroom → is selling wholly owned subsidiary Nidec ComponentsDealroom has a profile for this one. Try Dealroom → — formerly Copal Electronics — to a fund backed by US investment firm The Carlyle GroupDealroom has a profile for this one. Try Dealroom →. The transfer is valued at ¥102.98 billion (roughly $650 million) and is due to complete on December 1, 2026.
Why now? The sale is part of a restructuring triggered by an accounting scandal at Nidec. In May 2026, the company unveiled its "Re-Definition" five-year management reform plan (fiscal 2026–2030), pledging to concentrate resources on core businesses and priority growth areas.
What each side gets: Nidec Components, founded in 1967, makes pressure sensors, switches, torque sensors, and encoders, mainly for industrial equipment. It holds a world-leading share in the polygon mirror market, according to Nidec.
Nidec said that under Carlyle it can pursue an independent growth strategy with the scale of capital investment and research now required in markets such as semiconductor manufacturing equipment and collaborative robots.
The terms: Nidec will transfer all 66,302,120 shares — a 100% voting stake — to TCG2603, an entity indirectly held by a Carlyle-affiliated fund. After the deal, Nidec's holding falls to zero. The share-transfer agreement was signed October 1, 2026.
The backdrop: On September 30, 2026, Nidec reported a net loss of ¥564.62 billion for the year to March 2026, alongside an operating loss of ¥518.98 billion, after booking ¥632.14 billion in impairment charges on non-financial assets. Revenue rose 3.9% to ¥2.71 trillion. Auditor PwC JapanDealroom has a profile for this one. Try Dealroom → issued a disclaimer of opinion on the results.
The fallout has reached the top: chief executive officer Mitsuya Kishida resigned, with Masao Kaida, formerly chief technology officer, taking over. An external investigation certified 844 instances of improper quality conduct, 60 of them deemed serious.
What could go wrong? Nidec said it is still assessing the sale's impact on its consolidated results, leaving the financial effect unconfirmed for now.
The signal: A buyout by Carlyle hands a scandal-hit industrial group a route to shed a non-core unit while raising cash — and gives private equity another carve-out from a Japanese conglomerate under pressure to simplify.
Read more: eetimes.itmedia.co.jp
Image credit: Kitmondo.com
