EU Commission approves Luvata acquisition of ECO SpA on condition of divestiture of Luvata Czech SRO
August 7, 2007 - London
Following detailed study and consideration, The European Commission has approved the acquisition of ECO SpA, the world’s foremost manufacturer of heat-transfer coils and coolers by Luvata. The deal will be closed on August 23rd.
The ECO Group currently employs about 2,400 staff and reported net sales of €325 million in 2006. Its established position in Europe and growing presence in Asia complements Luvata’s similar position in North America and Asia through its Heatcraft business. The global HVACR equipment market, which they serve, is estimated to be worth in excess of US$60 billion.
Following studies by The Commission, concerns were raised about what would become Luvata’s share of the market after the acquisition. Luvata was therefore required to offer remedial action to ensure continued fair competition in the market. As a result, Luvata will be divesting its operation in The Czech Republic - Luvata Czech SRO - with immediate effect. The business will run as a standalone operation with its own, independent sales and management structure until a buyer is found. Luvata will channel its sales and customer enquiries for that region and market sector through its current operation in Torreglia, Italy.
John-Peter Leesi, CEO and President of Luvata commented: “The acquisition represents a big step forward for Luvata and we’re happy with the EU approval. Obviously, a healthy market cannot exist without fair competition and so we respect the judgment and wish the best of futures to our former Czech company, which, I hope, will continue with the Luvata tradition that has made it so successful. In no way does it detract from what a major, positive step the ECO SpA acquisition is for Luvata and for the industry.”