Nidec to acquire the Delta production line from Secop Austria

Released on April 1, 2020, in Kyoto, Japan 

Nidec Corporation (TSE: 6594; OTC US: NJDCY) (the “Company” or “Nidec”) announced today 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.

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.