Nissan Motor Company announced today that it has reached an agreement to sell its entire stake in Rhythm Corporation. The sale is part of a management buyout (MBO) to the funds managed by J.P. Morgan Asia Equity Advisors, a subsidiary of the U.S. private equity investment firm J.P. Morgan Partners. The transaction is scheduled to be completed by August 9.
Rhythm is an automotive parts manufacturer specializing in steering and suspension components. Currently, Nissan Motor Company owns 51% of total shares in Rhythm, while Unisia JECS owns 49% where will also be sold to the fund in a related transaction. J.P. Morgan Partners will assist in strengthening Rhythm's business operations from now on. Nissan's business with Rhythm will continue.
Nissan is restructuring its supplier network, creating an internationally competitive global supply base. Moreover, Nissan is implementing Nissan 180, a 3 year plan aiming to achieve Nissan's continuous revival through growth, profits and the elimination of debt.
- Outline of Rhythm Corporation -
Company name: Rhythm Corporation
Business areas: Production and sales of steering linkages, ball joints, and other components related to vehicle control and steering, and brake-related components.
Date of establishment: 1961
Capital: 400 million yen
Listing: Unlisted
Business results: Consolidated sales of 22,649 million yen (fiscal period ending in March 2002)
Number of employees: Approximately 1,000 (consolidated/at the end of March 2002)
- Outline of J.P. Morgan Partners -
Company name: J.P. Morgan Partners
Business areas: Private equity investment
Date of establishment: 1984
Operating assets: Over US$30 billion (approximately 3.6 trillion yen)
Investment transactions: Over 1,800
Number of employees: Approximately 160
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