Nidec Corporation’s $1.08 Billion Acquisition of Embraco

Linklaters LLP and Cleary, Gottlieb, Steen and Hamilton LLP acted as Whirlpool legal advisors. Citigroup Global Markets Inc. acted as exclusive financial advisor.

Whirlpool Corporation (NYSE: WHR) announced today that it has entered into an agreement to sell the Company’s Embraco compressor business to Nidec Corporation for a cash purchase price of $1.08 billion, subject to customary working capital and indebtedness adjustments. The transaction is expected to close in early 2019, subject to regulatory approvals and other customary closing conditions.

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 Corporation’s Latin America segment. In fiscal year 2017, Embraco contributed approximately $1.3 billion to Whirlpool’s net sales with margins approximating 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 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 Corporation.

Whirlpool Corporation (NYSE: WHR) is the world’s leading major home appliance company, with approximately $21 billion 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.

Linklaters LLP advised Whirlpool with a team including Peter Cohen-Millstein (Picture), Nick Rees, Kyle Colvin and Tai Vivatvaraphol.

Cleary, Gottlieb, Steen and Hamilton LLP advised Whirlpool on the antitrust aspects of the deal.

 

Involved fees earner: Peter Cohen-Millstein – Linklaters; Nick Rees – Linklaters; Kyle Colvin – Linklaters; Tai Vivatvaraphol – Linklaters;

Law Firms: Linklaters;

Clients: Whirlpool Corporation;