Danfoss bids €1.38bn for Finnish drives firm
FINLAND: Danfoss has made a €1.38bn offer for Finnish AC drives and inverter company Vacon.
If given the go-ahead, the new company would have a significant share of the AC drives market, which was estimated to be worth $11.8bn in 2013.
“After a careful examination of Danfoss’ offer, the board of directors of Vacon has unanimously decided to recommend that the shareholders accept it,” said Vacon chairman Panu Routila. “ By joining forces, the two companies will create a Nordic-based global player – a new AC drives business with the clear ambition to build a leading position in the AC drives market.”
“We have a clear strategic ambition to be one of the absolute top players in the businesses where we operate. Vacon is a very strong and innovative player and by creating this new drives business we can ensure a strong long-term growth trajectory,” commented Danfoss ceo Niels B Christiansen.
Vacon is one of the top seven largest AC drives manufacturers in the world with an estimated 5% market share. It has production and r&d facilities in Europe, Asia and North America, and sales offices in 31 countries. In addition, Vacon has sales representatives and service partners in nearly 90 countries. In 2013, Vacon’s revenues amounted to €403m, with the company employing approximately 1,600 people.
Danfoss says it will be positioning Finland as one of its future centres of excellence along with the other power electronics centers worldwide.
“I believe that customers will benefit significantly from the two companies joining forces as they will bring even more competitive, innovative, and attractive AC drives to the market. Today, Vacon is stronger than ever, and it has a great future ahead together with Danfoss,” commented Vacon’s president and ceo,Vesa Laisi.