Strengthening the refrigerator compressor business through the acquisition of Embraco

「Through this transaction, we will be able to expand and strengthen our presence in the freezer sector and enter new areas of the air-conditioning and heat-pump markets. We will therefore work to expand and grow our business in these markets and contribute to revenue and profit across the Nidec Group.」

「We have positioned the home-appliance, commercial and industrial motor business as one of our strategically important businesses and have worked to grow and strengthen it. Under this strategic policy, in the home-appliance motor business, we sought to further expand our refrigerator compressor business through the business of Sole Motors, acquired in January 2010, and the Embraco business, acquired in July 2019.」

「Revenue in the Home Appliances, Commercial and Industrial product group increased 30.7% year on year to ¥786.588 billion, mainly due to higher sales of compressors for home appliances, motors for air-conditioning equipment, and motors and gears for material-handling robots in Europe and the United States.」

「Revenue in the Home Appliances, Commercial and Industrial product group increased 34.1% year on year to ¥575.778 billion, mainly due to higher sales of compressors for home appliances, motors for air-conditioning equipment, and motors and gears for material-handling robots in Europe and the United States.」

「Revenue in the Home Appliances, Commercial and Industrial product group increased 6.9% year on year to ¥601.611 billion, reflecting the acquisition of Embraco, where sales of compressors for home appliances have increased substantially, as well as higher sales of motors and gears for material-handling robots in Europe and the United States.」

「Sales of the Home Appliances, Commercial and Industrial Products Group increased 2.8% year on year to ¥429.299 billion, mainly due to the impact of the Embraco acquisition, higher sales of motors and gears for material-handling robots in Europe and the Americas, and higher sales of compressors for home appliances. Operating income increased 33.5% year on year to ¥36.220 billion, despite the recognition of approximately ¥4.5 billion in restructuring expenses in Europe and other regions during the 9-month period of the current consolidated fiscal year, as higher sales and thorough cost improvements improved the operating margin by 1.9 percentage points.」

「Sales of the Home Appliances, Commercial and Industrial Products Group increased 1.0% year on year to ¥273.334 billion, mainly due to the impact of the Embraco acquisition.」

「On 1 June 2020, NIDEC acquired a delta-type compressor manufacturing line owned by Secop Austria for cash consideration of ¥2,531 million. Through this transaction, the Group acquired approximately 40 employees engaged in the delta-type compressor business and will further strengthen its refrigerator compressor business.」

「Net sales and profit for the year attributable to owners of the parent for the current consolidated fiscal year include net sales of ¥91,264 million and profit for the year attributable to owners of the parent of ¥2,460 million from Embraco's acquired business for the period from 1 July 2019 onward.」

「Net sales and quarterly profit attributable to owners of the parent for the 9-month period of the current consolidated fiscal year include net sales of ¥62,199 million and quarterly profit attributable to owners of the parent of ¥2,447 million from Embraco's acquired business for the period from 1 July 2019 onward.」

「On 1 July 2019 (Brazil time), NIDEC acquired 100% of Embraco's shares from Whirlpool's shareholders for cash consideration of ¥122,401 million. Embraco develops, manufactures and sells refrigerator compressors and electrical components.」

「On 1 July 2019 (Brazil time), our Group completed the acquisition of all shares of Embraco, Whirlpool's compressor business, for fair value consideration of US$1,130 million.」

「However, on 12 April 2019, the Company obtained conditional approval from the European Commission for its acquisition of Whirlpool's Embraco compressor business. This transaction is being conducted pursuant to the condition of that approval requiring the Company to sell the compressor business to an appropriate purchaser.」

「This transaction will further strengthen the Company's refrigerator compressor business through the complementary strengths of Embraco and 日本電産グローバル・アプライアンス・コンプレッサー社, while enabling expansion of the product lineup and sales regions. As environmental regulations are tightened in major regions including Europe, the Americas and China, demand for DC compressors is expected to increase. In addition to Embraco's advanced DC compressor technology, the Company can make extensive use of its brushless DC motor technology. Because compressors and motors also share many common components, the Company believes it can provide customers with further value through cost-saving synergies from joint procurement.」