Kyoto, Japan, 26 April 2018: Nidec Corporation announced that its Board of Directors has approved a resolution to acquire the compressor business (“Embraco”) of Whirlpool Corporation, the former company announced in a Press communiqué.
Nidec entered into a stock purchase agreement on April 24, 2018, where Nidec agreed to acquire the shares of multiple subsidiaries comprising the Embraco business (excluding Embraco Europe S.r.l) from Whirlpool, the communiqué said. Two Embraco entities located in China (Beijing Embraco Snowflake Compressor Company Limited and Qingdao Eecon Electronic Controls and Appliances Co. Ltd) would be acquired through a newly-created holding company, the details of which have not yet been determined, the communiqué further said. The purchase price of the acquisition is USD 1,080 million, the communiqué added.
According to Nidec, with this acquisition Nidec’s Global Appliance Division will be able to strengthen its refrigeration compressor business and expand its product reach and geographic footprint. Environmental regulations in Europe, the Americas and China are stimulating customer demand for eco-conscious and space-saving refrigeration compressors and Embraco’s advanced compressors meet such customer requirements, the communiqué said.
Nidec also believes its best-in-class brushless DC motor technology will complement Embraco’s compressors, the communiqué said. Furthermore, because motors and compressors have similarities in terms of the nature of components used, Nidec’s Global Appliance Division expects to reduce procurement costs (to the benefit of customers) by taking advantage of synergies of the Nidec group’s purchase capabilities, the communiqué further said.
According to Nidec, the company expects the refrigerator compressor sector, accounting for 170 million units per year, to provide attractive growth opportunities.