Daikin Industries looks forward to OYL acquisition
With the planned acquisition of OYL, Daikin Industries is poised to become the global number one in the air-conditioning field — according to Frans Hoorelbeke, general manager of sales for Daikin Europe. OYL’s interests include the brands of McQuay (HVAC), AAF International (air filtration) and J&E Hall (refrigeration and freezing). The €@1.7 billion takeover involves a 45.2% acquisition via a direct transaction with the two main shareholders and the remaining 54.8% via a mandatory general offer on the Malaysian stock exchange. The move has been approved by anti-trust committees in the USA, Asia and Europe, opening the way for the 45.2% direct purchase. The mandatory general offer to acquire the remaining shares on the Malaysian stock exchange will soon follow. Daikin’s annual sales are @5.8 billion, with OYL having a turnover of @1.2 billion — giving a total of @7 billion. The intended acquisition opens up enormous potential synergies covering both product ranges and geographic distribution. OYL in particular is strong in North America, a market where the Daikin presence is weak. OYL also has a solid presence in Asia. OYL’s forte is applied systems — including large chillers, fan-coil units, air-handling units, rooftop units and air filtration. In particular, McQuay makes large chillers up to 1920 kW, compared with a maximum capacity of 600 kW for Daikin chillers. In the UK, air-handling units are air filters are made at Cramlington in Northumberland. The UK service network of J & E Hall is also seen as providing commercial opportunities. Both companies will also benefit from the opportunities for joint purchasing, advertising and promotion structures and shared services. The impending merger will enable Daikin to offer the widest range of high-quality products in the industry. Product development and manufacturing will be optimised based on the group’s respective strengths.