LONDON - Luvata, a global supplier of fabricated metal solutions, services, and components to the manufacturing and construction industries, has announced the signing of an agreement to acquire ECO SpA, a major manufacturer of heat-transfer coils and coolers. The ECO Group currently employs about 2,400 staff and reported net sales of 325 million euros in 2006. It is currently indirectly owned by Compass Partners European Equity Fund and by the company management. Closing of the transaction is subject to regulatory approval within the European Union.
According to Luvata, the acquisition represents a strategic opportunity to strengthen its product offering in value-added solutions to HVACR customers. The ECO Group has a strong established position in Europe, complementing Luvata’s position in North America. Both groups have growing presences in Asia. Luvata said the combination of the two organizations will afford them a better physical presence in more key regions of existing and emerging business.
Luvata emerged when Outokumpu Copper Products was acquired by Nordic Capital in 2005.
John-Peter Leesi, CEO and president of Luvata, commented, “The combination of Luvata and ECO’s businesses represents a big step forward in providing advanced products and services to the HVACR industry. Our combined global footprint and capabilities will allow us to enhance the service and innovation offered to our customers. After the acquisition, we will cooperate closely with our customers to explore their future needs but, in the meantime, we will be maintaining our quality of service and commitment to the customers of both groups.”
Carlo Alberto Marsiletti, CEO of ECO Group, said, “ECO - acquired by Compass Partners European Equity Fund in November 2004 - has had impressive growth in recent years, becoming the first global manufacturer of coils and coolers. In joining Luvata, the industrial plan offers impressive opportunities for further growth, global coverage and technological developments to the benefit of its customers.”
The headquarters of the combination of ECO and Luvata’s coils business unit will be located in Pocenia, Italy.
For more information, visit www.luvata.com.
June 7, 2007: Luvata Acquires ECO Group
June 7, 2007