ACHRNEWS

July 13, 2006: Danfoss to Acquire Scroll Technologies

July 13, 2006
NORDBORG, Denmark - Danfoss A/S has entered into an agreement to acquire Scroll Technologies, an American-based manufacturer of scroll compressors for HVACR applications. Scroll Technologies operates a plant in Arkadelphia, Ark., and 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. 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," said Niels B. Christiansen, executive vice president and COO of Danfoss.

Within the Danfoss Refrigeration & Air Conditioning Division, Scroll Technologies will be integrated into the Danfoss Commercial Compressors organization which already runs three factories that produce scroll compressors in France, the U.S., 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. We are proud that we now have a complete range of scroll compressors with capacities from three to 30 tons," said Vagn Helberg, president of the Danfoss Refrigeration & Air Conditioning Division.

Since 1995, Scroll Technologies has been operated as a joint venture between Carrier Corp. and Bristol Compressors, a Johnson Controls company.

Danfoss 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.

"Divestiture of our stake in Scroll Technologies to a world-class compressor manufacturer is a positive development. This is consistent with our strategy of sourcing a substantial part of our compression needs from global and focused compressor manufacturers, including Danfoss," said Geraud Darnis, president of Carrier Corp.

"We are pleased to transfer this part of our activities to Danfoss, who we know to be a respected and reliable player within this segment. Danfoss is able to provide the dedicated focus it takes to continue the positive development of the company," said John Kennedy, executive vice president, Johnson Controls.

Publication date: 07/10/2006