Home appliance maker Whirlpool said on Tuesday it agreed to sell its Embraco compressor business to Japan's Nidec Corp for $1.08 billion in cash as it focuses on its consumer-facing business.
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The deal, which does not include Embraco's Italy facility that the company plans to close, is not expected to have a material impact on Whirlpool's 2018 financial results, Whirlpool said.
Whirlpool also said it expects to buy back up to $1 billion of shares through a tender offer at an anticipated price of $150 to $170 per share. The offer is expected to begin on April 26.
The Benton Harbor, Michigan-based company said it intends to execute open market share repurchases throughout 2018 after the completion of the tender offer.
Citigroup Global Markets Inc acted as financial adviser to Whirlpool, while Linklaters LLP and Cleary, Gottlieb, Steen and Hamilton LLP were legal advisers.
Brazil-headquartered Embraco has been a Whirlpool majority-owned business unit since 1997. It has about 11,000 employees across eight plants in Brazil, Italy, China, Slovakia and Mexico, Whirlpool said.
(Reporting by Philip George in Bengaluru; Editing by Gopakumar Warrier)