EMERSON TO SELL MOTORS AND CONTROLS BUSINESSES
TO NIDEC CORPORATION
– Decision to Sell Follows 6-month Evaluation Process
-Under Agreement, Nidec Corporation to Retain Facilities, Employees
-Headquarters to Remain in St. Louis
ST. LOUIS, (August 17, 2010) – Emerson (NYSE: EMR) today announced that it has agreed to sell its Motors and Appliance Controls businesses to Nidec Corporation (Nidec). Over the past six months the company had undergone an evaluation of the potential for sale of the businesses. The resulting agreement reached with Nidec today will provide a strong new U.S./North American presence for Nidec’s global motor and motor-related business. As such, Nidec said it intends to retain existing facilities and current management and employees. Further, Nidec will operate these businesses from a headquarters building on the Emerson campus that currently is home to 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,” said 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 also 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 popular Emerson Ceiling Fan.
Nidec, based in Kyoto, Japan, is about an $8 billion precision manufacturer of small and medium-size motors and fans for IT/consumer electronics, automobiles, home appliances, and industrial applications. The company also manufactures electronic/optical components and machinery.
“We are very excited about the potential for future growth of these businesses as part of Nidec Corporation,” said Shigenobu Nagamori, Founder and CEO of Nidec. “Emerson’s reputation for innovation, quality and service built over the years is very much aligned with Nidec’s principles and values. These businesses of motors and control technologies will be key to our long-term business strategy as we invest and further strengthen our capabilities in the North American market.”
Emerson’s Commercial and Industrial Motors is a leading industrial motor manufacturer featuring a full line of high efficiency motors. Motors large and small serve residential and commercial markets in applications ranging from water treatment, mining, oil and gas and power generation to air conditioning condensers, rooftop cooling towers and commercial refrigeration.
Emerson Appliance Motors and Controls is the largest supplier of appliance motors in the US, and its motors, motor controls, timers and machine controls are in clothes washers and dryers, dishwashers and refrigerators made by the leading manufacturers. It also makes motors, controls and switches for automotive and commercial markets.
Manufacturing facilities and technology centers for both businesses are in the United States, Mexico, China, India, and the UK. The businesses employ about 6,000 employees around the world, including 1,700 in the US and several hundred in the St. Louis area.