Air cooler maker Symphony to acquire Australia’s Climate Technologies

Ahmedabad-based air cooler manufacturer Symphony Ltd has agreed to acquire a 95% stake in Australia's Climate Technologies Pty Ltd, the Indian company said on Friday.

The acquisition will add to Symphony's international footprint and provides an opportunity to reduce business risks as a result of opposite winter and summer seasons in India and Australia, Symphony said in a stock-exchange filing

The deal valuation will be 40-44 million Australian dollar (Rs 201-22I crore or $29.7-32.7 million) depending on earnings before interest, tax, depreciation and amortisation for the year through June. The valuation is subject to change based on customary closing conditions, it added.

Symphony chairman Achal Bakeri Climate Technologies is a "strong strategic fit". "This acquisition will provide Symphony access to new geographies such as Australia and a strong position in the US, which is the largest air cooler market in the world," he added.

The company plans to finance the acquisition through a mix of debt and internal cash accruals. The deal is likely to be closed within a month.

Headquartered in Adelaide, Climate Technologies makes and sells evaporative air coolers, ducted gas heaters and other cooling products in Australia and the US. It was established by Ted Celi in December 1976; he and his family effectively own 90% of the company. The remaining 10% stake is owned by CEO Tim O' Leary, who will retain half his holding.

Climate Technologies owns established brands such as Bonaire and Celair. It commands 30% and 25% market share of the domestic Australian evaporative air coolers and ducted gas heaters market, respectively. It entered the US through a tie-up with Home Depot.

The company has a factory in Salisbury, South Australia and an assembly operation in Las Vegas in the US state of Nevada.

For the financial year ending 30 June 2018, Climate Technologies is estimated to report net sales of 55 million Australian dollars (Rs 274 crore) with an EBITDA of 5.45-6.0 million Australian dollars (Rs 27.4-30.1 crore).

Symphony is not new overseas takeover deals. In 2015, it had bought China's Munters Keruilai Air Treatment Equipment Guangdong Co Ltd for RMB 1.5 million ($234,000 then). Previously, it had acquired Mexico-based IMPCO.

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