Media no image

Nidec to Acquire Whirlpool Corporation’s Compressor Business

Press Releases   •   Apr 24, 2018 05:41 EDT

Nidec Corporation (TSE: 6594; OTC US: NJDCY) (the “Company” or “Nidec”) announced today that its Board of Directors has approved a resolution to acquire the compressor business (“Embraco”) of Whirlpool Corporation (“Whirlpool”) (the “Transaction”). For this purpose, Nidec entered into a stock purchase agreement on April 24, 2018 (Japan time).


1.Purpose and background of the Transaction

Nidec has been actively developing a new growth platform with a particular focus on its appliance, industrial and commercial business. As part of this strategy, the Company has pursued strategic acquisitions in the area of the appliance industry. For this purpose, Nidec created a new division named Nidec Global Appliance Division, which consists of Nidec Sole Motor Corporation S.R.L. (formerly, the household motor business of Appliances Components Companies S.p.A. acquired in January 2010), the appliance business of Nidec Motor Corporation (formerly, the motor and control business of Emerson Electric Co. acquired in September 2010), Nidec Motor Corporation Romania (formerly, ANA IMEP S.A. acquired in May 2016) and Nidec Global Appliance Compressors (formerly, Secop Group acquired in July 2017).

Prior to the acquisition of Secop, Nidec’s Global Appliance Division mainly focused on manufacturing and sales of wet appliances such as motors for washing machines, dryers and dishwashers. Through the acquisition of Secop, the Company added compressors to its product portfolio, which allows the Company to expand further into the refrigeration sector. The Company expects the huge refrigerator compressor sector, accounting for 170 million units per year, will provide attractive growth opportunities.

Embraco is well known as the global best in class in the refrigeration compressor sector, on account of its excellent technologies. Through the Transaction, Nidec’s Global Appliance Division is able to strengthen its refrigeration compressor business and expand its product reach and geographic footprint. In addition, ever stricter environmental regulations in major regions like Europe, the Americas and China are stimulating customer demand for eco-conscious and space-saving refrigeration compressors. Embraco’s advanced compressors meet such customer requirements. Nidec also believes its best in class brushless DC motor technology will complement Embraco’s compressors. 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.

Whirlpool and Nidec has established mutual trust through our long standing relationship and are willing to continue to keep this relationship.


2.About the Business to be acquired

(1) Overview of the Transaction

Nidec agreed to acquire from Whirlpool the shares of multiple subsidiaries comprising the Embraco business (excluding Embraco Europe S.r.l). 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.

(2) Overview of the Business

Embraco consists of multiple subsidiaries. As Nidec is not able to disclose financial information for each of the companies, provided below is an overview of the entire Embraco business.

(3) Purchase price and considerations

The purchase price is US$1,080 million (on a cash-free and debt-free enterprise value basis) and the consideration will be all cash.


3.Overview of Whirlpool Corporation (December 31, 2017)

4.Schedule

5.  Future Outlook

Nidec intends to make appropriate disclosures regarding the impact of the Transaction described herein on its consolidated financial performance for the current fiscal year and announce any changes to its financial performance in accordance with the applicable rules of the Tokyo Stock Exchange once such details are determined.

Cautionary Statement Concerning Forward-Looking Information

This press release contains forward-looking statements regarding the intent, belief, strategy, plans or expectations of the Nidec Group or other parties. Such forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors, including, but not limited to, the risks to successfully integrating the acquired business with the Nidec Group, the anticipated benefits of the planned transaction not being realized, changes in general economic conditions, shifts in technology or user preferences for particular technologies, whether and when required regulatory approvals are obtained, other risks relating to the successful consummation of the planned transaction, and changes in business and regulatory environments. The Nidec Group does not undertake any obligation to update the forward-looking statements contained herein or the reasons why actual results could differ from those projected in the forward-looking statements except as may be required by law.

Nidec was founded in Kyoto, Japan 45 years ago by four engineers and has since grown into a leading comprehensive motor manufacturer encompassing approximately 300 subsidiaries employing over 100,000 people throughout the world. After becoming the first company in the world to successfully commercialize a direct drive spindle motor for HDDs using brushless DC motor technology, the company branched off into the appliance component market which now constitutes one of its fastest growing business segments. In 2017, Nidec's Global Appliance Division also acquired the Secop Group, a leading European manufacturer of refrigeration compressors.

Nidec Corporation (TSE: 6594; OTC US: NJDCY) (the “Company” or “Nidec”) announced today that its Board of Directors has approved a resolution to acquire the compressor business (“Embraco”) of Whirlpool Corporation (“Whirlpool”) (the “Transaction”). For this purpose, Nidec entered into a stock purchase agreement on April 24, 2018 (Japan time).

Read more »
P2ygrotjexdxuplczfgk

Nidec Develops Fully Integrated Traction Motor System (E-Axle)

Press Releases   •   Apr 19, 2018 02:49 EDT

Today, Nidec, a Kyoto-based leading global manufacturer of electric motors, announced the successful development of a new fully integrated automotive traction motor system (e-axle) comprising an electric motor, reduction gear box and inverter. This new system is the latest and most advanced iteration of the company's e-axle developed to respond to the growing demand for automobile electrification.

Inyimjzwefn7whwc2kae

Nidec Industrial Solutions to Supply Shore-to-Ship Power to the Docks of Genoa Port

Press Releases   •   Apr 09, 2018 02:48 EDT

Nidec Corporation today announced that one of its Italian subsidiaries has signed a contract worth 8 million euros to design and construct a system for the port of Genoa that will enable docked vessels to plug in to the national grid and access all the energy they need to be fully operative without having to switch on their on-board engines, reducing ship emissions and noise pollution.

Jthf9e5scbm2fh4tllmk

Nidec to Showcase Latest Automotive Technologies at Auto China 2018

Press Releases   •   Mar 26, 2018 02:31 EDT

Kyoto, Japan: Today, Nidec Corporation announced that its automotive division will exhibit at Auto China 2018 to be held in Beijing, China in April - May this year. Nidec's electric motors are already used in tens of millions of automobiles across the world and Auto China 2018 provides an excellent opportunity for the company to showcase its latest technologies.

Juh929c2fvcvowtgdsbu

Nidec Founder Shigenobu Nagamori Shares his Outlook on Four Brushless DC Motor Related Trends

Blog posts   •   Mar 16, 2018 03:41 EDT

Following the announcement of Nidec’s financial results for the third quarter of FY2017, Nidec’s founder and CEO, Shigenobu Nagamori, held a presentation in Tokyo, Japan in which he discussed upcoming and ongoing trends in industries that depend on electric motors and Nidec’s approach to expanding production capacity.

Kyhbitqfgmcouau3ck78

Nidec Center for Industrial Science Starts Operations

Press Releases   •   Mar 07, 2018 00:32 EST

After a year of construction, the first section of the new Nidec Center for Industrial Science in Seika-cho, Kyoto prefecture has been completed. The new facility will bring together companies, research institutions and universities from all around the world and serve as a global hub for research and development of technology aimed at making manufacturing more efficient.

Ebut6b2uibqatdcfne4a

Summary of Statements Made at the Press Conference held on February 15

Press Releases   •   Feb 18, 2018 19:27 EST

On February 15, 2018 Nidec held a press conference about the appointment of a new President and Chief Operating Officer. The following is a summary of the statements made by the executives speaking at the press conference.

Ltyfaljij2dzzxe8g6o1

Nidec Appoints New President and Chief Operating Officer

Press Releases   •   Feb 15, 2018 20:52 EST

Nidec Corporation (TSE: 6594; OTC US: NJDCY) (the “Company”) today announced the appointment of new president effective June 20, 2018 upon shareholder approval at the Regular General Meeting of Shareholders and a subsequent meeting of the Board of Directors to be held on the same day.

Xysoklpwahapyagewwxs

Looking Back at Nidec's Appearance at CES 2018

Blog posts   •   Feb 06, 2018 04:05 EST

Join Nidec on a video tour of our booth at CES 2018 and learn more about the recent industry trends and what the world's number one comprehensive motor manufacturer has in store for the future!

Ygd1ipolwpgz51klzwm9

Nidec at CES 2018 - The world's largest motor maker is responding to the biggest industry trends

Press Releases   •   Jan 30, 2018 00:30 EST

Nidec, as the world’s largest comprehensive manufacturer of motors, showed a full display of technologies for a diverse field of applications at CES 2018. Motors are needed for every single technology that moves, meaning that Nidec felt perfectly at home during what was their third appearance at CES.

Upcoming events 1 event

27 Apr 00:00

Auto China 2018

Apr 27 - May 05
China International Exhibition Center New Venue Booth number: W3-W02

Images & Videos 6 images

Contacts 2 contacts

  • Press Contact
  • Global PR Team
  • Automotive Technology, Robots and Drones
  • marie@aaltoin.com

  • Press Contact
  • Media Relations
  • newsdehgcpsktmyelr@nidwdvabuecqe.coyhlxhom

About Nidec

For Everything That Spins and Moves

​Nidec was established in Kyoto, Japan in 1973 by its Chairman, President and CEO Shigenobu Nagamori. In 1979, Nidec became the first company in the world to successfully commercialize a direct drive spindle motor for HDDs based on a brushless DC motor. Since then, the company has grown into a world-leading comprehensive motor manufacturer encompassing approximately 300 subsidiaries employing over 100,000 people throughout the world and with annual sales exceeding $10B. Nidec's motors, drives, generators and related products are found in a diverse range of applications including computers, smartphones, home appliances, automobiles, manufacturing plants, robots and more.

Address

  • Nidec
  • Nidec head office (Kyoto, Japan)
  • 338 Kuzetonoshiro-cho, Minami-ku 601-8205 Kyoto
  • Japan