Emerson will sell its motors and appliance controls businesses to Nidec Corporation, Kyoto, Japan. Nidec sources say it plans to retain existing facilities and current management and employees. Nidec will operate the motors businesses from a headquarters building on the Emerson campus that houses the Motor Technology Center.
“Emerson was committed in this process to assuring that if the businesses were sold, they would end up in the hands of a strong company that would create a successful environment for its employees and customers,” says Craig Ashmore, Executive Vice President, Planning and Development, Emerson. “While there was considerable interest from many solid companies, Nidec Corporation’s proposal provided overwhelming value for everyone: our customers, employees and shareholders.”
Included in the sale are two Emerson Motor Company businesses – Emerson’s Commercial and Industrial Motors (CIM) and Emerson Appliance Motors and Controls (EAMC). Combined, these businesses accounted for more than $800 million in sales in fiscal 2009.
Emerson will continue to operate its hermetic motors business, which serves Emerson Climate Technologies’ Copeland Scroll compressors, and will continue to operate the large motor business based in Europe (Leroy-Somer) as well as Emerson Air Comfort Products in the U.S., which makes the Emerson ceiling fan.
Nidec, based in Kyoto, Japan, is an $8 billion precision manufacturer of small and medium-size motors and fans for information technology and consumer electronics, automobiles, home appliances, and industrial applications. The company also produces electronic/optical components and machines.