OSAKA, Japan — Daikin Industries Ltd., through its subsidiary American Air Filter Co. Inc., has announced the acquisition of U.S. air filter manufacturer Flanders Holdings LLC, Washington, North Carolina. The acquisition price is $430 million (approximately 50.7 billion yen at an exchange rate of 1 USD=118 JPY). Daikin is to acquire all shares of Flanders from Insight Equity Holdings LLC, an investor in the company. The acquisition is expected to be concluded in April 2016.
As a leading air filter manufacturer in the United States, Daikin said Flanders is particularly adept in products with high value-added such as those used in industrial cleanrooms in the fields of pharmaceuticals and food processing. The company boasts a broad product lineup ranging from commercial to residential and a nationwide sales network. Flanders has manufacturing bases near most major U.S. cities, including Chicago and New York, and provides short lead times and low logistics costs to deliver products that are cost competitive.
Having established manufacturing bases in the regions of Japan, North America, Europe, China, and Southeast Asia, Daikin has expanded its filter business until now through its subsidiaries AAF and Nippon Muki Co. Ltd. Products have focused on commercial-use air conditioning filters used in buildings and factories and the engineering fields, including dust collection systems for production facilities. AAF has established itself in each region of the world and performs development, production, sales, and service for products satisfying the needs of an extensive market.
With this acquisition, the Flanders business will be integrated into AAF and enable AAF to leverage its global sales network to market cleanroom equipment and high-end air filter products that are the strengths of Flanders. In addition to making AAF a leading manufacturer in the United States, which is reportedly the largest air filter market in the world, the acquisition will also position AAF as a leading company in the global market.
As a result of the merger, the filter business of the Daikin Group will become a business with sales exceeding 100 billion yen annually. Future synergies with the air conditioning business are anticipated as the filter business transforms into a core Daikin business as a third pillar behind air conditioning and chemicals.
For more information, visit www.daikin.com.
Publication date: 2/10/2016