Nidec Corporation announced that its Board of Directors has approved a resolution to acquire 100% equity shares of Secop Holding GmbH, Secop s.r.o., Secop Compressors (Tianjin) Co. Ltd. and Secop Inc. (“Secop”), and shareholder loans from Secop Beteillingungs GmbH, a portfolio management company owned by AURELIUS Equity Opportunities SE & Co KGaA (“Aurelius”) (the “Transaction”). For this purpose, Nidec entered into a stock purchase agreement on April 25, 2017.
Nidec has been actively developing a new growth platform with particular focus on appliance, industrial and commercial business. As part of this strategy, the Company has pursued strategic acquisitions in the area of appliance industry. For this purpose, Nidec has created a new division named Nidec Global Appliance Division, which consists of Nidec Sole Motor Corporation S.R.L. (formerly, the household motor business of Appliances Components Companies S.p.A. acquired in January 2010), the appliance business of Nidec Motor Corporation (formerly, the motor and control business of Emerson Electric Co. acquired in September 2010) and Nidec Motor Corporation Romania (formerly, ANA IMEP S.A. acquired in May 2016). Nidec Global Appliance Division has three factories in Europe, one factory in China and one factory in Mexico. Nidec Global Appliance Division mainly focuses on manufacturing and sales of wet appliances such as motors for washing machines, dryers and dishwashers.
Secop had been known as Danfoss Compressors GmbH, a subsidiary of the Danfoss Group until it was acquired by Aurelius in 2010. Since its foundation in 1956, Secop has provided compressors and associated services in the area of food cooling. Under Aurelius’s management, Secop acquired ACC Austria GmbH in 2014. Today, Secop is a leader in the European market for household refrigeration compressors and Secop is global leader in light commercial and DC refrigeration compressors. Secop’s slim-type, variable-speed compressors allow refrigerators to have a larger storage space and energy-efficient features. Through the Transaction, the Company is adding compressors to its product portfolio, which allows the Company to expand further into the refrigeration market. The Company expects the huge refrigerator compressor market producing 170 million units per year will provide attractive growth opportunities. In addition, ever stricter environmental regulations in major regions like Europe, Americas and China are stimulating the customer demand for eco-conscious and space-saving refrigeration compressors. Secop’s advanced compressors meet such customer requirements. The Company believes its market leading brushless DC motor technology will augment Secop’s competitive advantages. Furthermore, because motors and compressors have similarities in terms of the nature of components used, the Company expects to reduce procurement costs by taking advantage of synergies of Nidec group’s purchase capabilities.
The purchase price is €185 million.