Kemet, Nec Tokin announce global partnership

Kemet Electronics Corp. has revealed the completion of a capital injection of $50 million into Nec Tokin as an initial step in their alliance. The companies forged the deal on March 12 last year and are seeking to enhance their global businesses as well as Nec Tokin's financial base and the recovery of its capacitors business that 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. At the closing, Kemet received a third-party allotment of common shares. Following this allotment and taking into account the non-voting preferred shares assigned to Nec in March 2012, Kemet and Nec now respectively hold 51 per cent and 49 per cent of the voting interest, and 34 per cent and 66 per cent of the economic interest, in Nec Tokin.

The firms expect to use the partnership to enhance efficiencies through the cross-selling of both companies' products, greater efficiency of procurement and production, and enhanced product development by sharing technological know-how, while each company will continue to maintain their current independent sales organisations.

Nec Tokin will continue operating under the same brand and providing its existing line-up 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.