Carel signs agreement to acquire 51% of CFM Soğutma
BRUGINE, Padua, Italy, 10 May 2021: Carel Industries, on May 5, signed a binding agreement for the acquisition of 51% of CFM Soğutma ve Otomasyon A.Ş., a long-standing distributor and partner in Turkey as well as a provider of digital and on-field services and solutions dedicated to OEMs, contractors and end users in the Turkish HVACR market.
CFM’s workforce, based in its 6,500-square-metre Izmir facility, in Turkey, numbers 34, half of whom are part of the technical and engineering team, Carel said.
With major expertise in thermodynamics, mechanics, control and connectivity, CFM offers complete solutions, starting from system design and technical support, during the start-up phase of the plants, up to the remote monitoring and supervision service, Carel said. The offer, which is based on the proposal of the best brands and includes software development and customisation, customer training in its Academy as well as energy management services, allows CFM to stand out significantly, Carel said.
According to Carel, CFM has created a unique business model, demonstrated by its high rate of customer loyalty, its long-standing relationships with the country’s main retail chains and its particularly high profitability.
A peculiar feature of CFM is also that it invoices almost all its sales in euros, thereby protecting itself from fluctuations in the local currency, Carel pointed out. In 2020, CFM reported revenues of 14.5 million euros and EBITDA of five million euros, it said. It is expected that at the time of the closing of the operation the net financial position will be slightly positive, it pointed out.
Carel said the transaction is aligned with two of its key strategic directions: geographical expansion outside western Europe and the development of the services business – on-field and digital. The acquisition, the company said, will allow it to not only establish a direct presence in the important Turkish market and to have a solid platform for the development of its Middle East market but also to adopt a distinctive business model, characterised by a wide range of complementary services. The transaction will also allow it to further develop its potential in synergy with its hardware, IoT and thermodynamic competence, it said. After having established its success in the refrigeration sector, CFM, in fact, has extensive growth potential in air conditioning and humidification, it added.
The closing of the part-acquisition is expected by the end of July 2021 and is subject to obtaining the approval for the transaction from the local antitrust authorities, and meeting other conditions precedent that are characteristic of this type of agreement, Carel said. With this transaction, Carel said, it will take control of the Turkish company through the acquisition of 51% of the share capital of CFM, with an enterprise value of 23.1 million euros for the stake. The acquisition of the remaining 49% of CFM, the valuation of which is tied to the Turkish company’s future results, is governed by a cross-option mechanism between the parties, exercisable between 2024 and 2027, Carel said. This structure in which the current management is heavily involved in the company in the medium term, it added, ensures a complete alignment of interests during the integration period of CFM into CAREL.
Hira Industries launches thermal insulation solution
DUBAI, UAE, 15 February 2021: Hira Industries launched the Aerofoam NBR Lap Seal Tube, which the company described through a Press release as an effective and efficient thermal insulation solution that can be installed in various residential and commercial complexes to provide corrosion protection, whilst improving safety, efficiency and durability of the building.
Launched for the first time in the UAE market, the product is a pre-slit, closed-cell elastomeric thermal insulation tube, which is manufactured with a pre-installed adhesive that helps in reducing the use of additional adhesive by 90%, the company said. The overlap seals are particularly developed for mechanical, electrical and plumbing (MEP) contractors for a secure sealing and for reinsulating old and damaged pipes.
“At Hira Industries, our aim is to launch several new products and technologies in this year,” said Umesh Unni, General Manager, Hira Industries. “The focus will be to establish good customer relations and deliver cost-effective solutions to them. The launch of the Lap Seal Tubes is a reflection of our vision to expand our product base and cater to the ever-growing requirements of the insulation business.”
The Lap Seal Tube is much easier to install due to the pre-slit feature and the pressure-sensitive adhesive, reducing the installation time by more than 50%, the company claimed. Along with this, the company said, the aim of introducing the Lap Seal Tube is to provide a long-lasting insulation solution at a much lower cost in terms of the time and accessories used to install the product and the maintenance costs, as it does not require frequent maintenance and replacement. This feature of Tube makes it a unique proposition in the industry, setting it apart from existing products, the company asserted.
The fact that the product is manufactured in-house, the company said, facilitates quick bulk delivery and expert support for the HVAC&R industry, the company said. The Lap Seal Tube come with the guarantee of being able to last for more than a decade, as compared to the conventional insulation solutions that require frequent maintenance and replacement, making it the right solution for all insulation requirements at a much lower price, the company claimed. It is the perfect solution for a diverse range of insulation requirements, as the tube’s size can be customised to fit the pipes perfectly, while the pressure-sensitive adhesive overlay helps in an easy and quick adhesion, as compared to the other insulation solutions in the industry, the company said.
Unni said: “The tubes are made of high-grade-quality material and have an integrated structure, yet are economically priced, which makes them an attractive solution for all requirements. That is not all – keeping the environment in mind, we have used fume-free and clean materials to produce the Lap Seal Tubes. As a result, extra precautions are not required after installing the solution, which is extremely efficient in cooling systems, as they do not form condensation. We are committed to helping buildings increase LEED points, and the insulation of Lap Seal Tubes fulfills all LEED requirements to maintain a sustainable and green earth.”