Nidec to acquire Secop for €185m
JAPAN/GERMANY: Japanese electric motor company Nidec is set to acquire hermetic compressor manufacturer Secop for €185m.
Formerly Danfoss Compressors GmbH, the company was renamed Secop when it was acquired by German industrial holdings company Aurelius in 2010. Secop subsequently acquired ACC Austria GmbH in 2014 and remains a leader in the European market for domestic and light commercial hermetic compressors.
With headquarters in Flensburg, Secop has factories in Austria, Slovakia and China. Sales last year were €356.6m.
Nidec has been growing its appliance business through acquisition and created a new division named Nidec Global Appliance Division. The division operates three factories in Europe, one factory in China and one factory in Mexico. It mainly focuses on manufacturing and sales of wet appliances such as motors for washing machines, dryers and dishwashers.
The addition of compressors to its product portfolio gives Nidec the opportunity to expand further into the refrigeration market. Nidec sees growing customer demand for eco-conscious and space-saving refrigeration compressors in the light of stricter environmental regulations and the global phase down of HFCs.
“Secop’s advanced compressors meet such customer requirements,” the company said in its acquisition announcement. “The Company believes its market leading brushless DC motor technology will augment Secop’s competitive advantages. Furthermore, because motors and compressors have similarities in terms of the nature of components used, the Company expects to reduce procurement costs by taking advantage of synergies of Nidec group’s purchase capabilities,” it said.
The transaction is expected to be completed by the end of June.