Danfoss Extends Position in Commercial Compressors

July 31, 2006
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DENMARK - Danfoss has entered into an agreement to acquire Scroll Technologies, Arkadelphia, Ark., a manufacturer of scroll compressors for HVACR applications. The company will acquire 100 percent of the equity in Scroll Technologies and will continue production at the present facilities. The acquisition is dependent on the satisfaction of certain closing conditions, including obtaining certain governmental approvals.

The closing of the transaction is expected within the next few months. Scroll Technologies has been operated as a joint venture between Carrier Corp., a unit of United Technologies Corp., and Bristol Compressors, a Johnson Controls Co. Its plant has 750 employees. In 2005, Scroll Technologies manufactured just over 500,000 compressors and had revenues of more than $125 million.

"This is an important step and an historic acquisition for Danfoss. We have now ensured ourselves a very attractive position in the compressor market for air conditioning in commercial buildings," said Niels Christiansen, executive vice president and COO of Danfoss. "At the same time, we expand our product portfolio and improve our position even in the residential market. This acquisition will clearly strengthen our ambition of further growth within a traditionally important business area for Danfoss."

Within the Danfoss Refrigeration and Air Conditioning Division, Scroll Technologies will be integrated into the Danfoss commercial compressors organization that already runs three factories producing scroll compressors in the United States, France, and China.

"We have high expectations for the continued growth and development of this business area. We have been producing scroll compressors for several years, and we consider this technology to be an important element in addressing the increasing demand for efficient and environmentally sound solutions in our market," said Vagn Helberg, president of the Danfoss Refrigeration and Air Conditioning Division. "We are proud that we now have a complete range of scroll compressors with capacities from three to 30 tons."

Publication date: 07/31/2006

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