Daikin Industries Ltd has announced plans to acquire air filter manufacturer Flanders Holdings LLC for $US430 million.
The acquisition is expected to close in April 2016. As the leading air filter manufacturer in the United States, Flanders is particularly adept in products with high functionality and are used in industrial cleanrooms such as those in the fields of
pharmaceuticals and food processing.
The company boasts a broad lineup ranging from commercial to residential use and a nationwide sales network.
Flanders has manufacturing bases near most major US cities, including Chicago and New York, and excels in short lead times.
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 engineering fields, including dust collection systems for production facilities. AAF has closely embedded itself in each region of the world and performs development, production, sales, and services 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 the cleanroom equipment and high-end air filter products that are the strengths of Flanders.
In addition to making AAF the leading manufacturer in the United States, which is reportedly the largest air filter market in the world, this merger will also position AAF as a leading company in the global market.
Daikin president and CEO, Masanori Togawa, said future synergies with the air conditioning business are anticipated as Flanders transforms into a core Daikin business as a third pillar behind air conditioning and chemicals. "The merger will also serve to improve air environments in homes, buildings, and factories and address global environmental issues, including mitigation of air pollution."