United States.
Daikin Industries Ltd., through its subsidiary American Air Filter Co. Inc., has announced the acquisition of air filter manufacturer Flanders Holdings LLC. The acquisition price was US$430 million.
Daikin acquires all shares of Flanders from Insight Equity Holdings LLC, an investor in the company. The acquisition is expected to close in April 2016.
Daikin said Flanders is particularly skilled at products with high added value, such as those used in industrial cleanrooms in the pharmaceutical and food processing areas. The company has a wide range of products ranging from commercial to residential and a sales network throughout the United States. Flanders has manufacturing bases closer to major cities, including Chicago and New York, and offers short lead times and low logistics costs to deliver products that are cost-competitive.
As a result of the merger, the Daikin Group's filter business will become a business with sales exceeding 100 million yen annually. Future synergies with the air conditioning business are anticipated as the filter business transforms into a core business of Daikin as the third pillar behind air conditioning and chemicals.
