Alfa Laval has completed the divestment of its air heat exchanger business, related to commercial/industrial air heat exchangers. The business previously placed in the Greenhouse division, is from May 1 part of the LU-VE Group.
The product group commercial/industrial air heat exchangers represented the major part of the Greenhouse division. It was moved there in 2016, along with a few other product groups, to provide it with the best possible conditions to improve its performance. The strategy was successful, and the air heat exchanger business reported revenues 2018 of about SEK 1.1 billion, with an EBIT margin of 8.6%.
“I am pleased to announce the closing of this transaction, I am confident that the air business will have even better opportunities to continue developing under the ownership of the LU-VE Group,” says Tom Erixon, President and CEO of the Alfa Laval Group.
The divestment of the commercial/industrial air heat exchanger business to LU-VE Group affects about 400 employees, mainly based at the production sites in Italy, Finland and India, who have now joined the LU-VE Group.
The payment at closing will be EUR 43.6 million, reflecting a majority of the final purchase price. The second part will be paid within 12 months and based on performance.
Alfa Laval will continue to supply air heat exchangers (such as Alfa Laval ACE, Alfa Laval Niagara and Alfa Laval OLMI) for heavy process industry applications and other types of heat exchangers (such as brazed heat exchangers) for the HVAC and refrigeration industry.