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Nidec to acquire Embraco

JAPAN: Nidec, the Japanese manufacturer of electric motors, is to increase its expansion into the refrigeration market with the acquisition of compressor company Embraco.

The US$1,080m acquisition from owner Whirlpool follows Nidec’s €185m purchase last year of hermetic compressor manufacturer Secop and the creation of Nidec Global Appliance Compressors.

Significantly the purchase does not include Embraco Europe Srl and its manufacturing plant in Riva di Chieri, near Turin. Workers at the Italian factory have been fighting to keep the former Aspera plant open after Whirlpool announced its closure and the transfer of manufacturing to its Embraco factory in Slovakia.

Nidec has been actively developing a new growth platform with a particular focus on its appliance, industrial and commercial business. 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. Nidec expects the huge refrigerator compressor sector, accounting for 170 million units per year, will provide attractive growth opportunities.

Nidec believes its 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 by taking advantage of synergies of the Nidec group’s purchasing capabilities.

The deal includes the main Embraco plant in Brazil and Ealing Compañia de Gestiones y Participaciones SA in Uruguay, along with Embraco Slovakia and Embraco Luxembourg. Two Embraco entities located in China (Beijing Embraco Snowflake Compressor Company Limited and Qingdao Eecon Electronic Controls and Appliances Co Ltd) are to be acquired through a newly-created holding company, the details of which have not yet been determined.

Related stories:

Whirlpool confirms Embraco sale24 April 2018
USA: Whirlpool has confirmed its intention to sell the Embraco compressor business to the Japanese Nidec Corporation, with the transaction expected to close in early 2019. Read more…

Embraco factory closure postponed – 4 March 2018
ITALY: Workers at the threatened Embraco refrigeration compressor factory in Riva di Chieri have received a postponement of redundancy until the end of the year. Read more…

Nidec completes Secop purchase – 1 August 2017
JAPAN/GERMANY:  Nidec is to expand further into the refrigeration market following the completion of its acquisition of German hermetic compressor manufacturer Secop. Read more…

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