Nidec Corporation (Austria) - Nidec Corporation (TSE: 6594; OTC US: NJDCY) (the “Company” or “Nidec”) announced that the Company has signed a definitive agreement with Secop Austria GmbH (“Secop”) on March 31, 2020, by which Nidec will acquire the Delta production line from Secop (“the Transaction”) through the Company’s sub-subsidiary Nidec Global Appliance Italy S.r.l. and its Austrian company, as outlined below.
With this transaction, Nidec and Secop aim to preserve as many jobs as possible at the site in Fürstenfeld, Austria. Nidec will take over approximately 40 employees for the production of household refrigeration compressors on the Delta line and has already retained 47 employees for the production of motors for washing machines and dish washers. Furthermore, Secop will retain and strengthen its group headquarter in the Fürstenfeld area and therefore retain in excess of 80 employees. As a result, more than 170 of the current 300 jobs at the Fürstenfeld site will be saved. For the remaining employees, Secop offers socially responsible solutions.
Secop will transfer its second Austrian production line for the production of Kappa compressors, which was not for sale, to its European production facility in Zlaté Moravce, Slovakia. It was confirmed between the parties that for several reasons, including competitive issues, the Kappa line is not for sale to Nidec.
1. Overview of the Business:
- Transferor: Secop Austria GmbH
- Transferee: Eff Siebzigacht Beteiligungsverwaltung GmbH (a subsidiary of Nidec Global Appliance Italy S.r.l. )
- Headquarters of Secop: Fürstenfeld, Austria
- Transferred Business: Business relating to development, manufacture and sale of Delta compressor products
- Employees: Approximately 40
- Closing: By June 1, 2020 expected
2. Purpose and Background of the Transaction:
As described in “Nidec to sell its Secop Compressor Business to ESSVP IV advised by Orlando Management” on April 22, 2019, the compressor business of Nidec was sold to Secop as a condition for the European Commission’s approval of Nidec’s acquisition from Whirlpool in July 2019. Nidec remained active in the household compressor business as a result of its acquisition of Embraco. Nidec became aware that Secop Austria would suspend its operation in Fürstenfeld following Secop’s press release of October 22, 2019 and intended to offer for sale the Delta production line. In light of Nidec’s business strategy and economic rationale in Europe, and its confidence in the work force at Fürstenfeld, Nidec decided to further invest in Fürstenfeld and execute the Transaction with Secop Austria.
As a result of the Transaction, Nidec will take over approximately 40 employees who were engaged in the Delta compressor business. Nidec will work further to strengthen its refrigerator compressor business.
Finally, Nidec has been in close communication with the European Commission with regard to the proposed acquisition. Closing of the Transaction is conditional on approval by the European Commission which Nidec expects shortly.
3. Effect on Financial Performance for the Current Fiscal Year:
Nidec intends to make appropriate disclosures regarding the impact of the Transaction described herein on its consolidated financial performance for the current fiscal year and announce any changes to its financial performance in accordance with the applicable rules of the Tokyo Stock Exchange once such details are determined.
Cautionary Statement Concerning Forward-Looking Information:
This press release contains forward-looking statements regarding the intent, belief, strategy, plans or expectations of the Nidec Group or other parties. Such forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forwardlooking statements as a result of various factors, including, but not limited to, the risks to successfully integrating the acquired business with the Nidec Group, the anticipated benefits of the Transaction not being realized, changes in general economic conditions, shifts in technology or user preferences for particular technologies and changes in business and regulatory environments. The Nidec Group does not undertake any obligation to update the forward-looking statements contained herein or the reasons why actual results could differ from those projected in the forward-looking statements except as may be required by law.