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Whirlpool Closes USD 1.08bn Cash Sale of Embraco Compressor Business
Thursday 11 July 2019

11 July 2019 - US-based appliance maker Whirlpool Corp. (NYSE: WHR) has closed the sale of the company's Brazil-based Embraco compressor manufacturing business to Japanese motor manufacturer Nidec Corp. for a cash purchase price of USD 1.08bn, the company said.
Headquartered in Brazil, Embraco has been a Whirlpool majority-owned business unit since 1997.
The business has a workforce of approximately 11,000 employees across eight global manufacturing facilities located in Brazil, Italy, China, Slovakia and Mexico.
Embraco also maintains commercial offices in the United States and Russia.
The Embraco business is currently reported as part of Whirlpool Corp.'s Latin America segment. In fiscal year 2017, Embraco contributed approximately USD 1.3bn to Whirlpool's net sales with margins approximating the segment average.
The transaction is not expected to have a material impact on Whirlpool Corp.'s 2018 financial results.
Whirlpool expects to cease operations and end production at Embraco's Italy facility, which is subject to a separate agreement with local authorities and unions.
Therefore, the Embraco Italy facility is not included in the sale to Nidec Corp.
Whirlpool is a home appliance company, with approximately USD 21bn in annual sales, 92,000 employees and 70 manufacturing and technology research centers in 2017.
The company markets Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, Jenn-Air, Indesit and other major brand names in nearly every country throughout the world.
Nidec was founded in Kyoto, Japan 45 years ago by four engineers and has since grown into a comprehensive motor manufacturer encompassing approximately 300 subsidiaries employing over 100,000 people throughout the world.
After becoming the first company in the world to successfully commercialize a direct drive spindle motor for HDDs using brushless DC motor technology, the company branched off into the appliance component market which now constitutes one of its fastest growing business segments.
In 2017, Nidec's Global Appliance Division also acquired the Secop Group, a leading European manufacturer of refrigeration compressors.
Citigroup Global Markets Inc. acted as exclusive financial advisor, and Linklaters LLP and Cleary, Gottlieb, Steen and Hamilton LLP acted as legal advisors for Whirlpool.
Date Published: 11/07/2019
Target: Embraco
Country: Brazil
Deal Size: 1.08bn (USD)
Sector: Machinery/Engineering
Type: Divestment
Financing: Cash
Status: Closed
Vendor: Whirlpool Corp
Buyer: Nidec Corp