Deal Maker of the Year Awards 2012 The Interview n
undy Refrigeration
acquired Sparvel S de RL de CV from Brazeway Inc., a US based company with headquarters in Adrian, Michigan.
The transaction was completed on the 25th of September, 2012.
The terms of this transaction are not disclosed.
Sparvel is the NAFTA market leader for the manufacture and supply of wire on tube condensers to the US and Mexico domestic refrigeration market. Major customers include MABE, Whirlpool, GE. Electrolux and LG.
This acquisition was a very strong fit for our regional expansion strategy – see below.
This acquisition followed Bundy Refrigeration’s previous acquisition of TEL Group (with operations in Poland, Turkey and Italy) earlier in 2012.
Q
Were there any challenges that needed to be overcome?
There were no particular challenges to overcome although, as might be expected in any deal where a PE fund is looking to purchase from what is essentially a family company, approaches to business valuation, deal funding, etc, can be different from each of the parties. In the end, however, and after a long “courtship”, the actual deal completion was fairly smooth and uneventful.
Q
What is the focus and strategy for the acquisition?
Bundy Refrigeration’s strategy is to be a major player (either market leader or a strong No2) in all of the major product sectors and geographical regions in which it chooses to operate.
This acquisition of Sparvel a) gives Bundy Refrigeration a strong presence
in North America and Mexico which was previously missing from our portfolio
b) makes Bundy Refrigeration the No1 condenser supplier in the important NAFTA market
a. A position which is expected to further increase as we consolidate further new business opportunities during the next 3 - 6 months
c) makes Bundy Refrigeration the only refrigeration cooling system component supplier in the world to have such a strong physical presence across three regions; consolidating our strong global supply position across these 3 regions and across the complete refrigeration cooling system component base
d) enables Bundy Refrigeration to supply the key global and multi regional OEM’s, with a full cooling systems product range, locally in the key regions and countries in which they operate
e) expands Bundy Refrigeration’s local supply base close to the key OEM’s
f) gives Bundy Refrigeration an opportunity to optimize manufacturing footprint and product locations to continue to increase competitiveness, including the potential leveraging of global purchasing volumes
g) gives Bundy Refrigeration another market in which to promote and sell its new range of refrigeration cooling system components recently designed and introduced by Bundy Refrigeration’s global Product Development team
2011 saw global economic turmoil; do you think this has impacted on your 2012/2013 strategy?
Q
Despite the recent economic turmoil, especially in Europe, Bundy Refrigeration’s business strategy remains broadly unchanged.
We continue to focus on protecting our current business and harvesting profitable growth opportunities arising from three main groups of activities
New Product Introduction • Bundy Refrigeration has recently patented a number of new products that are generating significant interest amongst customers and that we expect will generate a significant number of additional sales in the coming years.
Regional Expansion • Bundy Refrigeration has made two significant acquisitions in the last eight months which have enabled us to considerably strengthen our presence in three of the largest and fastest growing markets in the world – Mexico/USA, Turkey and Poland
Customer Proximity and Service • With the expansions into Turkey and Poland, the acquisition in Mexico and our strong presence in Hungary and Brazil, Bundy has a very strong low cost country manufacturing base from which to provide a full range of refrigeration system components to our global customer base.
• We intend to rapidly grow our operations and product capability in Turkey, Mexico and Poland in particular over the next two years.
Contact: Chris Dixon
Bundy Refrigeration Email:
cdixon@bundyrefrigeration.com Website:
bundyrefrigeration.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126