Japan’s Nidec has agreed to acquire German compressor manufacturer SECOP for €185 million.
SECOP CEO Mogens Søholm at Chillventa 2016
To realise its goal of adding compressors to its product portfolio, Japanese engineering company Nidec has agreed a deal to purchase German manufacturer SECOP from AURELIUS Equity Opportunities SE & Co. KGaA for €185 million.
The Nidec Group, headquartered in Kyoto, entered into a stock purchase agreement on 25 April to acquire a 100% equity share of Secop Holding GmbH, Secop s.r.o., Secop Compressors (Tianjin) Co. Ltd. and Secop Inc. (‘SECOP’), and shareholder loans from Secop Beteillingungs GmbH.
The two companies agreed a purchase price of €185 million in an all-cash transaction. Nidec plans to finance the acquisition with debt financing, and aims to close the transaction by the end of June 2017. Currently the deal is subject to the approval of the competent authorities.
By adding compressors to its product portfolio, Nidec will gain direct access to the refrigeration market and its attractive growth opportunities. Nidec hopes to tap into synergies with its own motor business to reduce procurement costs for compressor components, thanks to their similarities with motors.
SECOP is a global provider of specialised compressors for refrigeration and freezer appliances operating in the household and light commercial segments. Its household division is a leading provider of compressors for refrigerators and freezers in Europe. The light commercial division sells compressors for frozen goods counters in supermarkets and hermetic DC compressors such as those used in cooling units in trucks.
Nidec is the world's No.1 manufacturer of small precision motors. It has gradually expanded its product lineup to include a variety of small to large motors, application products for machinery, and electronic and optical components.