ITALY: Heat exchanger manufacturer Lu-Ve has acquired the leading Indian coil producer Spirotech.
Spirotech Heat Exchangers has its hq and manufacturing facility in Bhiwadi, Rajasthan, about 60km south of New Delhi. It produces heat exchangers coils – copper/aluminium and aluminium/aluminium – with more than 70% of its business in domestic appliances, air conditioning and refrigeration. The company was founded in 1994 by chairman Dr Rajeshwar Kumar Malhotra and md Subramaniam Srinivasan.
Under the binding contracts, Lu-Ve will acquire 95% of the shares of Spirotech from existing shareholders while the remaining 5% would be held by Subramaniam Srinivasan, who will continue as managing director.
Dr Malhotra will remain as a consultant and provide full support during Spirotech’s transition and integration with the Lu-Ve group. He will also maintain his position as non-executive chairman of the board of Spirotech, supplemented by four representatives from Lu-Ve and an independent member.
Lu-Ve has had a sales and marketing office in India since 2011 and now plans to use the existing business and operations of Spirotech as a platform to rapidly expand its business in India and nearby countries.
Spirotech achieved revenues of around €21m in the year ending March 2016. The transaction entails an equity value for 100% of Spirotech of €33.6m. The deal is subject to customary closing conditions and it is expected that the closing would occur by the end of October.
The company’s 11,000m² factory, which it has occupied since 2012, is a LEED-certified building with a capacity of 3 million coils per year.
“We have recognised in Spirotech a company aimed by the same passion for innovation which is the value of Lu-Ve Group, commented Lu-Ve president Iginio Liberali. “Spirotech has been for years preferred supplier of some of the most prestigious European brands, thanks to the respect of the highest quality requirements for products and services. In addition, it is well rooted in the local market.”
Stressing the strategic importance of the acquisition, Liberali added: “It allows Lu-Ve Group to expand its presence in India and into the nearby countries, to extent the range of our applications, as well as to be closer to some of our global customers.”