International. Whirlpool Corporation announced in recent days that it has entered into an agreement to sell the Embraco compressor business to Nidec Corporation for a cash purchase price of $1.08 billion, subject to customary working capital and borrowing adjustments. The transaction is expected to close in early 2019, subject to regulatory approvals and other customary closing conditions.
"We are proud of our strong portfolio of global consumer brands. As Embraco operates in the business-to-business space, this transaction enhances our strategic focus on investing in and growing our consumer-facing business," said Marc Bitzer, Chief Executive Officer of Whirlpool Corporation. "The planned takeover bid further demonstrates our commitment to returning capital to shareholders, in line with our balanced capital allocation strategy."
Headquartered in Brazil, Embraco has been a majority-owned business unit of Whirlpool since 1997. The company employs approximately 11,000 employees at eight global manufacturing facilities located in Brazil, Italy, China, Slovakia and Mexico. Embraco also maintains commercial offices in the United States and Russia.
Embraco's business is currently reported as part of Whirlpool Corporation's Latin American segment. In fiscal 2017, Embraco contributed approximately $1.3 billion to Whirlpool's net sales with margins approaching the segment average.
The transaction is not expected to have a material impact on Whirlpool Corporation's 2018 financial results.
As previously announced, Whirlpool expects to cease operations and end production at Embraco's facilities in Italy, which are subject to a separate agreement with local authorities and trade unions. Therefore, Embraco Italy's facilities are not included in the sale to Nidec Corporation.
"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 high-value supplier to Whirlpool, and we look forward to Embraco's customers and employees thriving under Nidec ownership in the future."
In 2017, Nidec's Global Appliance division also acquired Secop Group, a European manufacturer of refrigeration compressors.
Source: www.prnewswire.com
