Nidec will sell its Secop compressor business to private equity funds ESSVP IV LP, ESSVP IV (Structured) LP and Silenos GmbH & Co KG.
The announcement by the Japanese company follows the European Commission’s approval of Nidec’s acquisition of Embraco from Whirlpool Corporation on condition of the sale its existing domestic and light commercial refrigeration compressor business.
Nidec’s announcement of its intent to purchase Embraco prompted an in-depth investigation into the acquisition by the European Commission in November, amid concerned that the takeover might reduce competition in the supply of refrigeration compressors.
To address the Commission’s competition concerns, Nidec proposed a set of commitments, including the sale of its refrigeration compressor business. This included the plants in Austria, Slovakia and China that would remove the entire overlap between Nidec and Embraco in the markets where the Commission had identified competition concerns.
Nidec acquired the hermetic compressor manufacturer Secop for €185m in 2017. The former Danfoss Compressors GmbH business was renamed Secop when it was acquired by German industrial holdings company Aurelius in 2010. Secop subsequently acquired ACC Austria GmbH in 2014.
A company statement confirms that the current transaction is subject to regulatory approvals in Germany, Austria and Spain, as well as the approval of the European Commission.
The latest deal was advised by Orlando Management AG, a Munich, Stockholm and Zurich-based private equity firm focusing on special situations in the German-speaking and Nordic markets.
