By Charlotte McLaughlin, Apr 24, 2018, 11:44 • 2 minute reading
The Nidec Corporation has entered into an agreement to buy compressor manufacturer Embraco from the Whirlpool Corporation for $1.08 billion (€890 million).
In a move that could have widespread implications on the market for light-commercial hydrocarbon-based compressors, the Whirlpool Corporation announced today it has agreed to sell Embraco – the Brazilian multinational manufacturer of hydrocarbon-based compressors – to Japanese company Nidec for $1.08 billion (€890 million).
The move follows last year’s acquisition by the Nidec Corporation of German firm SECOP, another manufacturer of hydrocarbon-based compressors.
Nidec said in a press release that it had acquired “the shares of multiple subsidiaries comprising the Embraco business (excluding Embraco Europe S.r.l),” which include the following:
“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,” the press release states.
The Embraco Italy production facility is also not part of the sale as Whirlpool expects to cease operations and end productions there soon.
"Nidec has been a trusted supplier for decades, and we look forward to building on that relationship in the future," said João Carlos Brega, president of Whirlpool Latin America. "Embraco will continue to be a highly-valued supplier to Whirlpool, and we expect Embraco's customers and employees to thrive under Nidec's ownership in the future."
“Since Embraco operates in the business-to-business space, this transaction enhances our strategic focus on investing in and growing our consumer-facing business.”
– Marc Bitzer, CEO, Whirlpool Corporation
Embraco, headquartered in Brazil, has been a Whirlpool majority-owned business since 1997 and in 2017 reported net sales of $1.3 (€1.07) billion.
"We are proud of our strong portfolio of global consumer brands," said Marc Bitzer, chief executive officer of Whirlpool Corporation. “Since Embraco operates in the business-to-business space, this transaction enhances our strategic focus on investing in and growing our consumer-facing business.”
The deal between Whirlpool and Nidec is expected to be finalised in early 2019, subject to regulatory approvals and other customary closing conditions.
This story will be updated with comments from the key stakeholders as we recieve them.