On April 24th, Nippon Denso announced the news that the company’s board of directors had passed a resolution to acquire the compressor business of the US Whirlpool company (Embracco). To that end, Nikko signed an equity deal with Whirlpool on April 24th. Acquisition agreement.
As early as last week, people familiar with the situation disclosed to the Chinese national grid that Nederko had purchased Embraco. Now that the boots have landed, the acquisition became a reality.
According to Reuters, Whirlpool has agreed to focus on consumer-oriented businesses and has therefore agreed to use cash transactions to sell Embraco's compressor business to Nidec for $1.08 billion.
The Nederland Group, founded in 1973, currently employs approximately 130,000 people worldwide, and has more than 300 branches in more than 40 countries around the world. Its annual turnover reached US$14 billion.
In the news posted on its website, Nederko said that Nederko has been committed to developing new business growth platforms in the home, industrial and commercial sectors. As part of this strategy, Nederko has made strategic acquisitions in the home sector. In order to achieve this goal, Nederland set up a new division, Nederk Global Electric, which includes Nederland Solar Electric Co., Ltd. (the household electrical parts group acquired by Nederland in January 2010). Motor Business), Nederland Motors Home Appliances Business (Netherland acquired Emerson Electric Motors and Controllers business in September 2010), Nederland Motors Romania (Nederteks ANA IMEP acquired in May 2016 SA (Romania), Nidec Global Electric Compressors (Nederland acquired Secop Group in July 2017).
Prior to the acquisition of Secop, Nidec Global Appliances focused on the production and sale of 'wet motors' such as washing machines, clothes dryers and dishwasher motors. Through the acquisition of Secop, Nidec Global Electric added compressors to its products. The combination, which allows the company to further expand into the refrigeration industry. Nidec Global Appliances expects that the huge demand for 170 million units per year in the refrigerator compressor industry will provide attractive growth opportunities.
Headquartered in Embraco, Brazil, was incorporated by Whirlpool in 1997. In the refrigeration compressor industry, Embraco has an important position in the industry. Currently, Embraco is in Brazil. Italy, China, Slovakia and Mexico have a total of 8 factories and employ approximately 11,000 people. The Nederk acquisition does not include Embraco's factory in Italy.
Nederko said that through the acquisition of Embraco, Nederland Global Appliances will be able to strengthen its refrigeration compressor business and expand its product coverage and geographic footprint. In addition, Europe, the United States, China and other major regions are more stringent. Environmental regulations spur customer demand for eco-friendly and space-saving refrigeration compressors. Embraco's advanced compressors meet the needs of these customers. Nederko also believes that its state-of-the-art brushless DC motor technology will meet Embu Leko's compressors complement each other.
Nederkos also stated that due to the similarities in the nature of the components used in motors and compressors, Nidec Global Appliances is expected to reduce procurement costs by leveraging the synergies of the procurement capabilities of the Nederland Group. The company further stated that Whirlpool and Neddko established mutual trust through long-term relations. Both parties hope to continue this relationship.
Nederk expects to complete the acquisition of Embraco in the first half of 2019.
During the China Refrigeration Exhibition held this month, Valde Taranzano, President and CEO of Nederland Global Appliances, said in his presentation of the company's development plan that Nederland Global Electric seeks to realize an annual turnover of US$1 billion in three years. 'Our Wet Motor' The business is already the first in the world, and the light commercial compressors business is also among the best in the world. Despite the poor status of the domestic compressor business, we believe that the Nidec Group never give up and decided to go home and use the market, and still have confidence. Compressor business made the world first.