In an announcement today, Tecumseh says that it has entered into a definitive merger agreement under which an affiliate of Mueller Industries and Atlas Holdings LLC will acquire Tecumseh in a transaction valued at approximately $123m, including the assumption of net debt.
According to Tecumseh, the proposed deal, which has been approved by its board of directors, would bring together Tecumseh, an iconic brand with a global footprint and market-leading positions, with new owners, Mueller Industries and Atlas Holdings, who will contribute market and operational expertise, as well as capital.
“We look forward to working with Mueller Industries and Atlas Holdings to help us achieve continued growth as we provide our customers with innovative, best-in-class products and outstanding service and support,” stated Harold Karp, Tecumseh’s president and CEO.
The transaction is expected to be completed in the third quarter of 2015.
After completion, Tecumseh says it will remain a standalone business with its headquarters unchanged and will continue to operate its global technology centres and manufacturing facilities in North America, South America, Europe and Asia.
Tecumseh will become a privately held company and will be delisted from the NASDAQ stock market, strengthening the company’s ability to focus on growing the business, launching new products and enhancing customer service levels. Tecumseh’s senior management is expected to remain in place.
Tecumseh traces its roots back to 1930 when Raymond Herrick formed Hillsdale Machine & Tool Company. Four years later at the height of the depression the company moved to the town of Tecumseh, where it was renamed Tecumseh Products.
It would grow to become the world’s largest independent producer of refrigeration compressors, revolutionising the industry in 1938 with the first hermetically sealed compressor. In 1947, Tecumseh designed and supplied the compressor for the first window air conditioning unit.
Today, the company’s global headquarters in Ann Arbor, Michigan, also serves as the regional management centre for North America. Other North American facilities include a plant and distribution centre in Tupelo, Mississippi; a motor plant in Paris, Tennessee; a production facility and offices near London, Ontario, Canada; and a production facility in Monterrey, Mexico.
The company also operates manufacturing facilities in France, Brazil and India, employing approximately 7,300 people worldwide.
Established in 1917 as the Mueller Metals Co, and later Mueller Brass Co, Mueller Industries is a leading manufacturer of copper tube and fittings, valves and vessels for the air conditioning and refrigeration industry. It has manufacturing and distribution facilities located across North America, UK, Mexico and China.
Atlas Holdings was founded in 2002, Atlas Holdings LLC is headquartered in Greenwich, Connecticut, its affiliates owning 16 companies that employ nearly 15,000 associates and operate more than 100 facilities across the globe – generating approximately $4bn in revenue annually.