Daikin announce acquisition of Flanders
USA – Daikin Industries Ltd., through its subsidiary American Air Filter Company Inc. have announced the acquisition of U.S. air filter manufacturer Flanders Holdings LLC. The acquisition price has been set at 430 million dollars, with Daikin expected to acquire all shares in Flanders from Insight Equity Holdings LLC, an investor in the company. The acquisition is due to be concluded in April 2016 upon completion of all necessary procedures and protocols.
Flanders is currently the leading air filter manufacturer in the United States, specialising in products with high functionality and used in industrial cleanrooms such as those in the fields of pharmaceuticals and food processing. The company also boasts a broad range of products designed for many sectors, including commercial and residential sectors, and has a nationwide sales network.
This new acquisition is a continuation of Daikin’s recent strategy which has seen the company establish manufacturing bases in the regions of Japan, North America, Europe, China, and Southeast Asia. Up until now Daikin has used its subsidiaries AAF and Nippon Muki Co., Ltd to drive this expansion in its filter business. Consequently, with this most recent acquisition, 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 latest statistics suggest is the largest air filter market in the world, Daikin hope this merger will also help position AAF as a leading company in the global market.
Daikin also anticipate future synergies with the air conditioning business as the filter business is steadily being transformed into a core Daikin business as a third pillar behind air conditioning and chemicals. The company have also suggested that the merger will serve to improve air environments in homes, buildings, and factories; better address global environmental issues, including mitigation of air pollution; and meet the need that is increasing worldwide for creation of comfortable air environments.