Nidec acquires Embraco

Create Date: 2024-8-30 12:03:23|Source: Nidec

Nidec today announced that it has completed the acquisition of Whirlpool's compressor business, Embraco, on July 2, 2019, following the approval of the European Commission. The acquisition is made pursuant to the acquisition plan announced in a Nidec press release dated April 24, 2018. With this acquisition, Embraco becomes a subsidiary of Nidec. The related regular post-closing filing and registration is expected to be completed on September 30, 2019.

Nidec acquires Embraco

Founded in 1973, Nidec Group currently employs 130,000 people worldwide and has 300 branches in more than 40 countries around the world, mainly focusing on the production and sales of "wet motors" such as washing machines, dryers and dishwasher motors.

This also means that with the acquisition of Embraco, Nidec Global Appliances is adding compressors directly to its portfolio, which allows the company to further expand into the refrigeration industry. It should be pointed out that Nbraco, headquartered in Brazil, occupies an important position in the refrigerator compressor industry, and currently has a total of 8 plants in Brazil, Italy, China, Slovakia and Mexico, and this acquisition of Nidec is the remaining 7 plants in addition to the Italy plant.

Nidec's acquisition of Embraco is a multi-faceted acquisition. With Embraco's compressor business, Nidec complements its best brushless DC motor technology with Embraco's superior compressors, successfully expanding the company's business into the refrigeration industry and expanding its product coverage and geographic footprint.

More importantly, with stricter environmental regulations in Europe, the United States, China and other regions, Nidec can complement Embraco's technology to meet the needs of more customers for eco-friendly and space-saving refrigeration compressors. It is understood that Nidec expects to complete the acquisition of Embraco in the first half of 2019.

Nidec's move can be regarded as rushing directly into the track. Although no one denies Nidec's position as the top in the wet motor business, and the light commercial compressor business is still reasonable, the shortcomings of the household compressor business are indisputable, and it is still necessary for Nidec to acquire Embraco to directly strengthen its refrigeration and compression business. As for whether the industrial pattern of the refrigeration industry can be rewritten in the future, it will obviously take time to give an answer!

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