Daikin Industries Ltd. Acquires Flanders Holdings LLC

Japan: Daikin Industries Ltd., a multinational air conditioner manufacturer based in Japan, has acquired USA based Flanders Holdings LLC through its subsidiary American Air Filter (AAF) Company Flanders Holdings LLC is involved in manufacturing of high-end air filter products and cleanroom equipment. The value of the acquisition is USD430 million and the deal is expected to close by April 2016. Daikin Industries Ltd, the parent company of AAF, would acquire 100 percent shares in Flanders Holdings LLC. On completion of acquisition, business of Flanders Holdings would be incorporated into AAF and combined annual sales for air filter business unit of Daikin Industries would exceed USD890 million (JPY100 billion). AAF would utilize its widespread sales network to market the high-end air filter products and cleanroom equipment, manufactured by Flanders Holdings.

TechSci Research depicts that the acquisition of Flanders Holdings LLC would enable American Air Filter Company to supply air filter products at low logistics costs in the US, which would give the company a competitive edge over other major players operating in the business. The synergistic effect of this deal would aid AAF to strengthen its position as a market leader in the global air filters market.

According to the recent report published by TechSci Research, ‘’Global Air Filters Market Forecast and Opportunities, 2020’’, the global air filters market is estimated to surpass USD19 billion through 2020. HVAC, automotive and bag house air filters are the dominant segments in the market, followed by cleanroom air filters and gas turbine air filters.