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Mergers & Acquisitions Review 2012
MERGERS & ACQUISITIONS REVIEW
Mergers & Acquisitions Review 2012
F
iltration Industry Analyst looks back at the mergers and acquisitions that helped to reshape the filtration and separation sector during 2012. The deals completed in the first and second quarters of 2012 are listed here. Third and fourth quarter activity will be covered in the February 2013 issue of Filtration Industry Analyst.
First quarter 2012 Company
Activity
Comment
Mann+Hummel
Strengthened its water business with the acquisition of Brazilian system supplier Fluid Brasil Sistemas e Tecnologia Ltda. Fluid Brasil, which specialises in reverse osmosis and ultrafiltration solutions used in the treatment of water and wastewater, had a turnover of approximately E25 million in 2011 and 80 employees (see Filtration Industry Analyst, January 2012).
Fluid Brasil enables Mann+Hummel to expand its system expertise and gives the company access to the local water market. www.mannhummel-water.com, www.mann-hummel. com and www.fluidbrasil.com.br
Foster Wheeler AG’s Global Power Group
Completed the acquisition of Graf-Wulff GmbH, a German scrubbing technology company (see Filtration Industry Analyst, January 2012).
Graf-Wulff gives Foster Wheeler significant market presence in scrubbers, fabric filters and related equipment for both new and existing utility power and industrial steam plants. www.fwc.com and www.graf-wulff.de
Trojan Technologies
Bought Norway’s Salsnes Filter AS. Salsnes Filter’s patented filter technology removes particles from municipal and industrial process water and is used in industries such as food, paper, cruise lines and aquaculture (see Filtration Industry Analyst, January 2012).
Salsnes’ filters fit well with the Canadian UV water treatment technology company’s municipal business. www.trojanuv.com and www.salsnes-filter.com
SKion GmbH
Acquired a 20% stake in the Netherlands-based water technology company Paques (see Filtration Industry Analyst, January 2012).
German investment firm SKion secured the holding through the acquisition of shares from the Pâques family and a capital increase. www.paques.nl and www.skion.de
Nederman
Bought the Nederman business of Turkey’s Havak Endüstri Tesisleri Tic Ltd Sti (see Filtration Industry Analyst, January 2012). Havak has been a distributor of Nederman products in the Turkish market for the last 20 years.
Nederman will use the acquisition as a base to bring its full range of products and solutions to the Turkish market. www.nederman.com
Siemens Industry Automation Division
Added Cambridge Water Technology to its water portfolio. Founded in 1996, Cambridge Water Technology’s patented CoMag and BioMag systems provide high performance, low cost clarification, filtration, and biological treatment solutions for the municipal and industrial markets (see Filtration Industry Analyst, January 2012).
Siemens saw the acquisition of Cambridge Water Technology as an important building block in its strategy of pursuing leading-edge technologies with high customer value for municipal water and wastewater treatment as well as select industrial markets. www.siemens.com/water and www cambridgewatertech.com
Gryphon Investors
Bought a majority interest in K&N Engineering, a provider of air and oil filtration products for the automobile industry (see Filtration Industry Analyst, January 2012).
Private equity firm Gryphon Partner is looking to further build its brand in the US, while accelerating its international expansion. www.knfilters.com and www.gryphoninvestors.com
Mahle Industry GmbH
Moved into water treatment with the acquisition of the German technology venture InnoWa Membrane GmbH (see Filtration Industry Analyst, February 2012). InnoWa Membrane manufactures high-performance filter systems based on membrane technology. The company emerged from the former EBG GmbH and employs 20 people.
InnoWa Membrane gives Mahle Industry a new water treatment platform. www.mahle.com and www.innowa-gmbh.de
Parker Hannifin Corp
Bought Camfil Farr Group’s railroad filtration business, a manufacturer of air and liquid filtration products used in rail and transit, mining and marine engine applications(see Filtration Industry Analyst, February 2012). Headquartered in Laval, Canada, the Camfil Farr railroad filtration business had sales of approximately US$22 million in 2011 and 90 employees.
The Camfil Farr railroad filtration business allows Parker’s Filtration Group to build a worldwide presence in specialised rail, marine and mining markets, while adding clean air technologies to strengthen its filtration solutions capabilities. www.parker.com and www.camfilfarr.com
Pentair Filtration Solutions
Expanded in sterile air filtration by acquiring Germany’s Carl Prandtl MicroFiltration (see Filtration Industry Analyst, February 2012).
The deal strengthens Pentair’s position in the food and beverage sector, allowing the company to provide more integrated solutions. www.pentair.com and www.cpm-prandtl.de
Wärtsilä Corp
Completed the acquisition of the engineering company Hamworthy plc (see Filtration Industry Analyst, February 2012 and November 2011).
The acquisition of Hamworthy is a major step in Wärtsilä’s strategy to strengthen its position as a total solutions provider. www.wartsila.com and www.hamworthy.com
January 2013
Filtration Industry Analyst
5
MERGERS & ACQUISITIONS REVIEW Company
Activity
Comment
Atlas Copco
Acquired China’s Wuxi Shengda Air/Gas Purity Equipment Co Ltd, a manufacturer of compressed air and gas drying and filtration equipment (see Filtration Industry Analyst, February 2012).
This is in line with Atlas Copco’s strategy to offer complete solutions to its customers. www.atlascopco.com and www.sd-wx.com
Andrew Elliot Group LLC (AEG)
Bought Heumann Environmental Co, a Louisville, Kentucky, USA-based designer and builder of cyclones that separate microscopic particles from gas streams (see Filtration Industry Analyst, February 2012).
As a wholly owned operating entity of private equity holding company AEG, Heumann Environmental should benefit from its new owner’s management, administrative, capital and manufacturing resources. www.heumannenviro.com and www. andrewelliotgroup.com
FLSmidth
Finalised the purchase of Knelson’s operations in Russia (see Filtration Industry Analyst, February 2012).
This completes FLSmidth’s purchase of the assets of Knelson, a Canadian based company active in the minerals industries. www.flsmidth.com and www.knelson.com
Freudenberg Filtration Technologies India Pvt Ltd
Signed an agreement to acquire Pune, India-based Pyramid Filters Pvt Ltd (see Filtration Industry Analyst, March 2012). Founded in 1998, Pyramid Filters develops and produces air filter elements and systems for cleanroom applications in the pharmaceutical, medical, food and chemical industries.
Under Freudenberg Filtration Technologies Group ownership, Pyramid can jointly develop world class cleanroom filtration solutions with its new owner. www.freudenberg-filter.com and www.pyramidfilter.com
Thompson Street Capital Partners
Sold Universal Air Filter (UAF) to the Chicago-based Filtration Group (see Filtration Industry Analyst, March 2012). UAF is a manufacturer of specialty air filtration products.
UAF described private equity firm Thompson Street as a valuable partner. www.uaf.com, www.tscp.com and www.filtrationgroup.com
SPX Corp’s Flow Technology segment
Added to its food and beverage portfolio with the purchase of Seital Srl, an Italian supplier of disk centrifuges (separators and clarifiers) to the global food and beverage, biotechnology, pharmaceutical and chemical industries (see Filtration Industry Analyst, March 2012).
The acquisition creates growth opportunities
Dover Corp
Bought the Maag Group from Clyde Blowers Capital and CGS Management (see Filtration Industry Analyst, March 2012). Maag manufactures gear pumps, pelletizers and filtration systems and had a turnover of around E130 million in 2011.
Maag has become part of the company’s Downers Grove, Illinois-based Pump Solutions Group. www.maag.com and www.pumpsg.com
across SPX’s food and beverage systems and product portfolios. www.spx.com and www.seital.com
Second quarter 2012 Company
Activity
Comment
The Dow Chemical Co
Invested further in filtration technology by acquiring the remaining equity in Clean Filtration Technologies Inc, following two previous investments by Dow Venture Capital during 2010 and joint research and development work (see Filtration Industry Analyst, April 2012).
The new operating unit will allow Dow to expand its position in the macrofiltration market. www.dowwaterandprocess.com and www.cleanfiltration.com
Parker Hannifin Corp
Signed an agreement to buy the UK’s Olaer Group, a manufacturer of fluid management solutions including accumulators, oil coolers and filters from Gresham Private Equity (see Filtration Industry Analyst, April 2012).
Olaer has a strong position in Europe and a growing presence in Asia. www.parker.com
Insight Equity Holdings LLC
Finalised its acquisition of air filter manufacturer Flanders Corp (see Filtration Industry Analyst, May 2012). Flanders’ common stock was then delisted from the OTC/QX
With a new private equity partner, Flanders is looking to increase its customer service levels, brand positioning and overall market leadership. www.flanderscorp.com and www.insightequity.com
Clarcor Inc
Acquired Modular Engineering Pty Ltd, an Australian manufacturer of natural gas filtration products and a distributor of aftermarket elements and a long-time supplier to Clarcor’s PECOFacet division (see Filtration Industry Analyst, May 2012).
Modular Engineering gives Clarcor first-fit filtration manufacturing capabilities in Western Australia, as well as a platform to increase its sales of aftermarket elements throughout the region. www.clarcor.com
Velcon Filters LLC
Expanded in aviation with the acquisition of Warner Lewis GmbH, a German supplier of fuel filtration equipment and cartridges for the aviation industry (see Filtration Industry Analyst, May 2012). Warner Lewis specialises in aircraft refuelling solutions for customers in Europe, the Middle East and Africa and has been a strategic business partner of Velcon for more than 40 years.
This is the third acquisition that The Sterling Group portfolio company Velcon Filters has made in three years, having acquired Chemflo in late 2009 and Netherlands-based Twin Filter BV in 2010. www.velcon.com and www.warnerlewis.de
Nanostart Asia Pacific Pte Ltd
Increased its stake in Singapore’s Membrane Instruments and Technologies Pte Ltd (MINT) from 18% to 28% industry (see Filtration Industry Analyst, June 2012).
The funds will be used for the marketing of MINT’s Membrane Integrity Sensor and its international rollout. www.mintmembranes.com
Grundfos Group
Moved into membranes with the acquisition of Californian company Enaqua, a specialist in UV technology to disinfect water and in membranes for water purification (see Filtration Industry Analyst, June 2012).
The acquisition of Enaqua supports the Grundfos plan to generate one third of its turnover from products other than pumps in 2025. www.grundfos.com and www.enaqua.com
6
Filtration Industry Analyst
January 2013
Mergers & Acquisitions Review 2012
F
iltration Industry Analyst looks back at the mergers and acquisitions that helped to reshape the filtration and separation sector during 2012. The deals completed in the first and second quarters of 2012 are listed here. Third and fourth quarter activity will be covered in the February 2013 issue of Filtration Industry Analyst.
First quarter 2012 Company
Activity
Comment
Mann+Hummel
Strengthened its water business with the acquisition of Brazilian system supplier Fluid Brasil Sistemas e Tecnologia Ltda. Fluid Brasil, which specialises in reverse osmosis and ultrafiltration solutions used in the treatment of water and wastewater, had a turnover of approximately E25 million in 2011 and 80 employees (see Filtration Industry Analyst, January 2012).
Fluid Brasil enables Mann+Hummel to expand its system expertise and gives the company access to the local water market. www.mannhummel-water.com, www.mann-hummel. com and www.fluidbrasil.com.br
Foster Wheeler AG’s Global Power Group
Completed the acquisition of Graf-Wulff GmbH, a German scrubbing technology company (see Filtration Industry Analyst, January 2012).
Graf-Wulff gives Foster Wheeler significant market presence in scrubbers, fabric filters and related equipment for both new and existing utility power and industrial steam plants. www.fwc.com and www.graf-wulff.de
Trojan Technologies
Bought Norway’s Salsnes Filter AS. Salsnes Filter’s patented filter technology removes particles from municipal and industrial process water and is used in industries such as food, paper, cruise lines and aquaculture (see Filtration Industry Analyst, January 2012).
Salsnes’ filters fit well with the Canadian UV water treatment technology company’s municipal business. www.trojanuv.com and www.salsnes-filter.com
SKion GmbH
Acquired a 20% stake in the Netherlands-based water technology company Paques (see Filtration Industry Analyst, January 2012).
German investment firm SKion secured the holding through the acquisition of shares from the Pâques family and a capital increase. www.paques.nl and www.skion.de
Nederman
Bought the Nederman business of Turkey’s Havak Endüstri Tesisleri Tic Ltd Sti (see Filtration Industry Analyst, January 2012). Havak has been a distributor of Nederman products in the Turkish market for the last 20 years.
Nederman will use the acquisition as a base to bring its full range of products and solutions to the Turkish market. www.nederman.com
Siemens Industry Automation Division
Added Cambridge Water Technology to its water portfolio. Founded in 1996, Cambridge Water Technology’s patented CoMag and BioMag systems provide high performance, low cost clarification, filtration, and biological treatment solutions for the municipal and industrial markets (see Filtration Industry Analyst, January 2012).
Siemens saw the acquisition of Cambridge Water Technology as an important building block in its strategy of pursuing leading-edge technologies with high customer value for municipal water and wastewater treatment as well as select industrial markets. www.siemens.com/water and www cambridgewatertech.com
Gryphon Investors
Bought a majority interest in K&N Engineering, a provider of air and oil filtration products for the automobile industry (see Filtration Industry Analyst, January 2012).
Private equity firm Gryphon Partner is looking to further build its brand in the US, while accelerating its international expansion. www.knfilters.com and www.gryphoninvestors.com
Mahle Industry GmbH
Moved into water treatment with the acquisition of the German technology venture InnoWa Membrane GmbH (see Filtration Industry Analyst, February 2012). InnoWa Membrane manufactures high-performance filter systems based on membrane technology. The company emerged from the former EBG GmbH and employs 20 people.
InnoWa Membrane gives Mahle Industry a new water treatment platform. www.mahle.com and www.innowa-gmbh.de
Parker Hannifin Corp
Bought Camfil Farr Group’s railroad filtration business, a manufacturer of air and liquid filtration products used in rail and transit, mining and marine engine applications(see Filtration Industry Analyst, February 2012). Headquartered in Laval, Canada, the Camfil Farr railroad filtration business had sales of approximately US$22 million in 2011 and 90 employees.
The Camfil Farr railroad filtration business allows Parker’s Filtration Group to build a worldwide presence in specialised rail, marine and mining markets, while adding clean air technologies to strengthen its filtration solutions capabilities. www.parker.com and www.camfilfarr.com
Pentair Filtration Solutions
Expanded in sterile air filtration by acquiring Germany’s Carl Prandtl MicroFiltration (see Filtration Industry Analyst, February 2012).
The deal strengthens Pentair’s position in the food and beverage sector, allowing the company to provide more integrated solutions. www.pentair.com and www.cpm-prandtl.de
Wärtsilä Corp
Completed the acquisition of the engineering company Hamworthy plc (see Filtration Industry Analyst, February 2012 and November 2011).
The acquisition of Hamworthy is a major step in Wärtsilä’s strategy to strengthen its position as a total solutions provider. www.wartsila.com and www.hamworthy.com
January 2013
Filtration Industry Analyst
5
MERGERS & ACQUISITIONS REVIEW Company
Activity
Comment
Atlas Copco
Acquired China’s Wuxi Shengda Air/Gas Purity Equipment Co Ltd, a manufacturer of compressed air and gas drying and filtration equipment (see Filtration Industry Analyst, February 2012).
This is in line with Atlas Copco’s strategy to offer complete solutions to its customers. www.atlascopco.com and www.sd-wx.com
Andrew Elliot Group LLC (AEG)
Bought Heumann Environmental Co, a Louisville, Kentucky, USA-based designer and builder of cyclones that separate microscopic particles from gas streams (see Filtration Industry Analyst, February 2012).
As a wholly owned operating entity of private equity holding company AEG, Heumann Environmental should benefit from its new owner’s management, administrative, capital and manufacturing resources. www.heumannenviro.com and www. andrewelliotgroup.com
FLSmidth
Finalised the purchase of Knelson’s operations in Russia (see Filtration Industry Analyst, February 2012).
This completes FLSmidth’s purchase of the assets of Knelson, a Canadian based company active in the minerals industries. www.flsmidth.com and www.knelson.com
Freudenberg Filtration Technologies India Pvt Ltd
Signed an agreement to acquire Pune, India-based Pyramid Filters Pvt Ltd (see Filtration Industry Analyst, March 2012). Founded in 1998, Pyramid Filters develops and produces air filter elements and systems for cleanroom applications in the pharmaceutical, medical, food and chemical industries.
Under Freudenberg Filtration Technologies Group ownership, Pyramid can jointly develop world class cleanroom filtration solutions with its new owner. www.freudenberg-filter.com and www.pyramidfilter.com
Thompson Street Capital Partners
Sold Universal Air Filter (UAF) to the Chicago-based Filtration Group (see Filtration Industry Analyst, March 2012). UAF is a manufacturer of specialty air filtration products.
UAF described private equity firm Thompson Street as a valuable partner. www.uaf.com, www.tscp.com and www.filtrationgroup.com
SPX Corp’s Flow Technology segment
Added to its food and beverage portfolio with the purchase of Seital Srl, an Italian supplier of disk centrifuges (separators and clarifiers) to the global food and beverage, biotechnology, pharmaceutical and chemical industries (see Filtration Industry Analyst, March 2012).
The acquisition creates growth opportunities
Dover Corp
Bought the Maag Group from Clyde Blowers Capital and CGS Management (see Filtration Industry Analyst, March 2012). Maag manufactures gear pumps, pelletizers and filtration systems and had a turnover of around E130 million in 2011.
Maag has become part of the company’s Downers Grove, Illinois-based Pump Solutions Group. www.maag.com and www.pumpsg.com
across SPX’s food and beverage systems and product portfolios. www.spx.com and www.seital.com
Second quarter 2012 Company
Activity
Comment
The Dow Chemical Co
Invested further in filtration technology by acquiring the remaining equity in Clean Filtration Technologies Inc, following two previous investments by Dow Venture Capital during 2010 and joint research and development work (see Filtration Industry Analyst, April 2012).
The new operating unit will allow Dow to expand its position in the macrofiltration market. www.dowwaterandprocess.com and www.cleanfiltration.com
Parker Hannifin Corp
Signed an agreement to buy the UK’s Olaer Group, a manufacturer of fluid management solutions including accumulators, oil coolers and filters from Gresham Private Equity (see Filtration Industry Analyst, April 2012).
Olaer has a strong position in Europe and a growing presence in Asia. www.parker.com
Insight Equity Holdings LLC
Finalised its acquisition of air filter manufacturer Flanders Corp (see Filtration Industry Analyst, May 2012). Flanders’ common stock was then delisted from the OTC/QX
With a new private equity partner, Flanders is looking to increase its customer service levels, brand positioning and overall market leadership. www.flanderscorp.com and www.insightequity.com
Clarcor Inc
Acquired Modular Engineering Pty Ltd, an Australian manufacturer of natural gas filtration products and a distributor of aftermarket elements and a long-time supplier to Clarcor’s PECOFacet division (see Filtration Industry Analyst, May 2012).
Modular Engineering gives Clarcor first-fit filtration manufacturing capabilities in Western Australia, as well as a platform to increase its sales of aftermarket elements throughout the region. www.clarcor.com
Velcon Filters LLC
Expanded in aviation with the acquisition of Warner Lewis GmbH, a German supplier of fuel filtration equipment and cartridges for the aviation industry (see Filtration Industry Analyst, May 2012). Warner Lewis specialises in aircraft refuelling solutions for customers in Europe, the Middle East and Africa and has been a strategic business partner of Velcon for more than 40 years.
This is the third acquisition that The Sterling Group portfolio company Velcon Filters has made in three years, having acquired Chemflo in late 2009 and Netherlands-based Twin Filter BV in 2010. www.velcon.com and www.warnerlewis.de
Nanostart Asia Pacific Pte Ltd
Increased its stake in Singapore’s Membrane Instruments and Technologies Pte Ltd (MINT) from 18% to 28% industry (see Filtration Industry Analyst, June 2012).
The funds will be used for the marketing of MINT’s Membrane Integrity Sensor and its international rollout. www.mintmembranes.com
Grundfos Group
Moved into membranes with the acquisition of Californian company Enaqua, a specialist in UV technology to disinfect water and in membranes for water purification (see Filtration Industry Analyst, June 2012).
The acquisition of Enaqua supports the Grundfos plan to generate one third of its turnover from products other than pumps in 2025. www.grundfos.com and www.enaqua.com
6
Filtration Industry Analyst
January 2013