Daikin confirms $430m Flanders deal
JAPAN: Daikin has confirmed its acquisition of US filter manufacturer Flanders with the deal expected to be concluded in April.
A statement from Daikin’s head office in Osaka this morning confirms that, through its subsidiary American Air Filter (AAF), it has decided to acquire US air filter manufacturer Flanders Holdings for $430m from Insight Equity Holdings.
The statement goes on to acknowledge Flanders ability in producing products with high functionality and high value-added that are used in industrial cleanrooms such as those in the fields of pharmaceuticals and food processing.
“The company boasts a broad lineup ranging from commercial to residential use and a nationwide sales network,” Daikin says. “Flanders has manufacturing bases near most major US cities, including Chicago and New York, and excels in short lead times and low logistics costs to deliver products that are cost competitive.”
AAF was acquired by Daikin in 2007 as part of its purchase of McQuay and the Malaysian OYL Group. In 2009, the company acquired Nippon Muki, the leading developer and manufacturer of air filters in Japan.
Announcing the new acquisition, Daikin says: “The Flanders business will be integrated into AAF and enable AAF to leverage its global sales network to market the cleanroom equipment and high-end air filter products that are the strengths of Flanders. In addition to making AAF the leading manufacturer in the United States, which is reportedly the largest air filter market in the world, this merger will also position AAF as a leading company in the global market.”
The merger will provide Daikin with a business with sales exceeding $850m annually.
“Future synergies with the air conditioning business are anticipated as the filter business transforms into a core Daikin business as a third pillar behind air conditioning and chemicals,” the Daikin statement adds.