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Luvata acquires ECO Group

Leading metals fabrication group to expand its global presence in Heat Transfer  

May 25, 2007 - London
Luvata, the 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, the world’s foremost manufacturer of heat-transfer coils and coolers. The ECO Group currently employs about 2,400 staff and reported net sales of €325 million 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 EU.

The acquisition represents a strategic opportunity for Luvata to strengthen its product offering in value-added solutions to Heating, Ventilation, Air-Conditioning and Refrigeration (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. The combination of the two organisations will afford them a better physical presence in more key regions of existing and emerging business. The global HVACR equipment market is estimated to be worth in excess of US$60 billion.

Luvata emerged when Outokumpu Copper Products was acquired by Nordic Capital in 2005. Luvata has been promoting an approach of better understanding its customers’ businesses – a philosophy it terms: “Partnerships Beyond Metals”. Since over two thirds of the ECO Group’s products are co-designed with specific customers, it is seen as a good strategic fit.

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 declared: “ECO - acquired by Compass Partners European Equity Fund in Nov 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 combined organisation, consisting of ECO and Luvata’s coils business unit will be situated in Pocenia, Italy.

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About Luvata

Formerly known as Outokumpu Copper Products, and acquired from Outokumpu OYJ in 2005 by Nordic Capital, Luvata is the leading international supplier of solutions, services, components and materials in a variety of metals for manufacturing and construction. Luvata’s solutions are used in industries such as power generation, architecture, automotive, transport, medicine, air-conditioning, industrial refrigeration, scientific research, clothing, consumer products and construction. The company’s success is not just attributed to its longevity and technological excellence, but also to its strategy of building lasting relationships by becoming involved its clients’ projects from the outset. Employing over 6,000 staff in 13 countries, Luvata works in partnership with customers such as Siemens, Toyota, CERN, Shaaz, and DWD International.

About ECO

ECO SpA is the worldwide leading manufacturer of coils and coolers for the Heating, Ventilation, Air-Conditioning and Refrigeration industries (HVACR). ECO has been producing coils and coolers since 1972 and employs approximately 2,400 individuals in Italy, Austria, Spain, Sweden, USA and China. Total sales for the group in 2006 were approximately €325 million.

Thanks to its long experience in all the sectors of thermodynamics and its broad knowledge of heat transfer, ECO is capable of approaching production on a tailor-made basis, creating value for customers, providing flexible service and fast reaction.

About Compass

ECO is ultimately owned by Compass Partners European Equity Fund. Compass Partners is a London-based private equity fund focused on originating, structuring and managing control investments across Europe.

 

Press contacts

Justin Roux
SVP Communications
justin.roux@luvata.com
Tel: +44 (0)208 380 0300

Susan Porter
Communications Manager
Publications & PR
susan.porter@luvata.com
Tel:  +740 368 7750



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