GEA releases its heat exchangers division TRITON
Germany: The German group GEA intends to sell its heat exchangers arm, TRITON. This decision was taken to allow the firm to maintain its market leadership position in mechanical engineering and process equipment.
GEA Group (G1AG.DE) is a German-based company specialising in mechanical engineering and process equipment. It intends to sell its division of heat exchangers in TRITON for the sum of €1.4 billion according to Reuters. Therefore, the production unit HEAT EXCHANGERS (HX) is also no longer a part of GEA as was officially announced on the company´s website.
This decision was taken following a study conducted last year in order to identify areas of significant business development of the group. It will therefore focus on its core business. It plans to sustainably increase its share of revenue from food process technology to achieve medium-term growth of 75%.
GEA said that the sales process progresses and the agreement could be concluded by the summer. On the other side, the two groups TRITON and EQT have made no comment. TRITON beat a rival consortium of buyout group, namely EQT and industrial services group BILFINGER (GBFG.DE) during the acquisition.
The division of the heat exchangers is the second largest element of the company GEA on turnover. Last year, the firm still made air-conditioning and cooling equipment. According to Dr. Jürg Oleas, Chairman of the Executive Board of GEA Group, the HX division is very profitable and has a better market positioning. This division can develop even better as part of a new structure.