Luvata, the global supplier of fabricated metal solutions,
services and components to the manufacturing and construction
industries has announced the signing of an agreement to acquire ECO
SpA, the world's foremost manufacturer of heat-transfer coils and
coolers. The ECO Group currently employs about 2,400 staff and
reported net sales of EUR 325 million in 2006. It is currently
indirectly owned by Compass Partners European Equity Fund and by the
company management. Closing of the transaction is subject to
regulatory approval within the EU.
The acquisition represents a strategic opportunity for Luvata to
strengthen its product offering in value-added solutions to Heating,
Ventilation, Air-Conditioning and Refrigeration (HVACR) customers. The
ECO Group has a strong, established position in Europe, complementing
Luvata's position in North America. Both groups have growing presences
in Asia. The combination of the two organisations will afford them a
better physical presence in more key regions of existing and emerging
business. The global HVACR equipment market is estimated to be worth
in excess of US$60 billion.
Luvata emerged when Outokumpu Copper Products was acquired by
Nordic Capital in 2005. Luvata has been promoting an approach of
better understanding its customers' businesses - a philosophy it
terms: "Partnerships Beyond Metals". Since over two thirds of the ECO
Group's products are co-designed with specific customers, it is seen
as a good strategic fit.
John-Peter Leesi, CEO and President of Luvata commented: "The
combination of Luvata and ECO's businesses represents a big step
forward in providing advanced products and services to the HVACR
industry. Our combined global footprint and capabilities will allow us
to enhance the service and innovation offered to our customers. After
the acquisition, we will cooperate closely with our customers to
explore their future needs but, in the meantime, we will be
maintaining our quality of service and commitment to the customers of
both groups."
Carlo Alberto Marsiletti, CEO of ECO Group declared: "ECO -
acquired by Compass Partners European Equity Fund in Nov 2004 - has
had impressive growth in recent years, becoming the first global
manufacturer of coils and coolers. In joining Luvata, the industrial
plan offers impressive opportunities for further growth, global
coverage and technological developments to the benefit of its
customers."
The headquarters of the combined organisation, of ECO and Luvata's
coils business unit will be situated in Pocenia, Italy.
About Luvata
Formerly known as Outokumpu Copper Products, and acquired from
Outokumpu OYJ in 2005 by Nordic Capital, Luvata is the leading
international supplier of solutions, services, components and
materials in a variety of metals for manufacturing and construction.
Luvata's solutions are used in industries such as power generation,
architecture, automotive, transport, medicine, air-conditioning,
industrial refrigeration, scientific research, clothing, consumer
products and construction. The company's success is not just
attributed to its longevity and technological excellence, but also to
its strategy of building lasting relationships by becoming involved
its clients' projects from the outset. Turnover for the Luvata group
in 2006 was EUR 2.8 billion. The company has a global presence of over
35 operating companies, 6,000 employees and 27 production facilities.
It works in partnership with customers such as Siemens, Toyota, CERN,
Shaaz, and DWD International.
About ECO
ECO SpA is the worldwide leading manufacturer of coils and coolers
for the Heating, Ventilation, Air-Conditioning and Refrigeration
industries (HVACR). ECO has been producing coils and coolers since
1972 and employs approximately 2,400 individuals in Italy, Austria,
Spain, Sweden, USA and China. Total sales for the group in 2006 were
approximately EUR 325 million.
Thanks to its long experience in all the sectors of thermodynamics
and its broad knowledge of heat transfer, ECO is capable of
approaching production on a tailor-made basis, creating value for
customers, providing flexible service and fast reaction.
About Compass
ECO is ultimately owned by Compass Partners European Equity Fund.
Compass Partners is a London-based private equity fund focused on
originating, structuring and managing control investments across
Europe.