Nederman Buys Dantherm Filtration

The Swedish company Nederman Holding has bought the filtration business of Dantherm for 280 Mill. Danish kroner. After the acquisition is completed, the merged company will be the global market leader in industrial air filtration. 
The acquisition is good for Dantherm Filtrations future development, says Henrik Friis, head of Dantherm Filtration in China, Thailand, Vietnam and Malaysia, where Dantherm has just registered a company.
“In consideration of the Dantherm Groups difficult financial situation since the global crises, I am quite happy that we have found new owners with a financial strong back ground, as we have now secured our future and we look forward to expand our business with them,” Henrik Friis says.
“Dantherm Filtration and Nederman work today within the same kind of business but in different areas. We have only a few competing products and in Asia we only have two countries that overlap and that is China and India,” he says, adding that he does not expect that the integration of these companies will give a lot of changes on the operational level.
“We will have a lot of great opportunities for expanding both our business areas with joint efforts in the market. Nederman is in same business and also with a Scandinavian culture so I don’t think we will have problems finding our self at home under the new owners,” Henrik Friis says.
Dantherm Filtration had sales in 2009 of around SEK 980 million, a headcount of slightly over 900. The acquisition of Dantherm Filtration will double Nederman’s existing business in the area.
In press releases issued by both companies, the logic behind the transaction is cut down to the basics:
“Together, Danthem Filtration and Nedermann will form the largest, world-leading player in industrial air filtration.”
 “Dantherm Filtration supplements Nederman with filtration systems that make it possible to offer complete solutions for industrial air filtration. These include large and medium-sized filters aimed primarily at the manufacturing industry.” 
“Nederman complements Dantherm Filtration’s solutions including extraction systems, arms and high vacuum solutions used for guaranteeing a good working environment.” 
“In cases where the companies target the same customers, it currently occurs with different applications. The merger is therefore primarily complementary, opening up expansion in the value chain by selling systems,” it says in the release from Nederman.

It was Dantherm’s management which in the autumn last year initiated a process “which included assessing possible structural measures”. Now, that a new owner is found, Torben Duer, Dantherm A/S’s CEO, comments:
 “Nederman is a very good new owner for Dantherm Filtration. I see asignificant potential in this deal where the companies together will become a leader in industrial air. Both businesses will benefit greatly from the marketing and sales synergies in the transaction.” 
“Dantherm took over the now divested Filtration activities in 2005. In the intervening period, Dantherm Filtration has developed positively. With the divestment, Dantherm achieves an improved capital structure with significantly reduced interest-bearing debt,” Torben Duer says.
The purchase price is DKK 280 million (approx. SEK 364 million). The acquisition is expected to be completed end of April 2010. Integrating the activities will take place gradually and is expected to be fully implemented in 2011.
 Nederman has secured long-term bank financing for the acquisition through an advance credit commitment from Skandinaviska Enskilda Banken (publ). As part of the agreement with the bank, Nederman’s two largest shareholders, Investment AB Latour and Ernstr.mgruppen AB, have provided guarantees.

Tor the remaining business of Dantherm, which constitute “the historic heart of the Dantherm group”, a growth strategy has been drawn up. The two business areas are Telecom and HVAC (Heating, Ventilation, Air Conditioning). The new strategy for these two business areas “will again make Dantherm a company which generates good earnings,” Torben Duer states.
 The two diverse business areas are bound together by technological synergies. Within telecom, Dantherm provides Air-conditioning systems for global network suppliers and telecom operators. Within HVAC the primary product groups comprise dehumidification, ventilation and stationary and mobile cooling and heating units.

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