Japan’s Nidec Corporation has announced the acquisition of Whirlpool’s compressor business Embraco.
Although Nidec will sell Secop group as a condition of the European Commission’s approval for the deal, the company believes the acquisition of Embraco will allow it to expand further into the global refrigeration compressor market.
It also says the acquisition will bring Nidec Group closer to its FY2020 sales target of $23.4 billion (Canadian) as both parties’ technological capabilities, brands, and customer base blend well together.
Nidec has been actively developing a new growth platform with particular focus on appliance, commercial and industrial business. As part of this strategy, the company is pursuing strategic acquisitions in the appliance industry.
Embraco directly employs 10,000 people around the world and has the capacity to manufacture 47 million compressors annually.