Luvata’s former Czech facility acquired by Lloyd Electric
May 14, 2008 - London
In a deal of undisclosed value, Lloyd Electric and Engineering Ltd (Lloyd Electric) has announced its acquisition of Luvata’s former operation in Prague, Czech Republic. The 300-employee plant, which produces coil units for the Heating, Ventilation, Air-Conditioning and Refrigeration (HVACR) industries, was divested from Luvata last year.
In August 2007, Luvata acquired ECO SpA, the world’s foremost manufacturer of heat-transfer coils and coolers and was required by the European Commission to release the Prague operation to ensure continued fair competition in the market. Since that ruling, the Prague facility has been running as a standalone operation with its own, independent sales and management structure while awaiting a buyer it was represented by Ernst and Young for the purpose of this transaction.
The plant was acquired by Lloyd Coils Czech s.r.o., a Special Purpose Vehicle (SPV) for the acquisition. The SPV is owned by Lloyd Electric & Engineering Limited and its associate company and was advised by AZB & Partners in New Delhi, Weinhold Legal in Prague and MAQS in Stockholm.
Commenting at the time of the Commission’s ruling, John-Peter Leesi, CEO and President of Luvata commented: “A healthy market cannot exist without fair competition and so we respect the Commission’s judgment. We wish the best of futures to our former Czech company under its new owners and I hope it will continue with some of the Luvata tradition that made it so successful.”