KEMET Corporation and NEC TOKIN Corporation have announced the closing of the first step in their alliance with the completion of a capital injection of $50 million by KEMET Electronics Corporation, KEMET’s wholly-owned subsidiary, into NEC TOKIN. The companies entered into a definitive agreement in March of last year and are looking at synergies that will enhance the two companies’ global businesses as well as NEC TOKIN’s financial base and the recovery of its capacitors business which was severely damaged by the October 2011 flooding in Thailand.
KEMET and NEC TOKIN have received all necessary governmental approvals, and the customary closing conditions to the injection have been satisfied. KEMET and NEC Corporation now respectively hold 51% and 49% of the voting interest, and 34% and 66% of the economic interest, in NEC TOKIN.
KEMET and NEC TOKIN said that they expect to use this partnership to enhance efficiencies through the cross-selling of both companies’ products, achieve greater efficiency in terms of procurement and production, and enhance product development by sharing technological know-how, while each company will continue to maintain their current independent sales organizations.
NEC TOKIN will continue operating under the same brand and providing its existing lineup of products and services within this alliance. Moreover, in the two companies’ extensive product areas, the alliance is expected to enhance further growth of business into the industrial field and worldwide markets, while capitalizing on NEC TOKIN’s material technologies and KEMET’s expertise in global operations management.