PR Newswire | 12 Sep, 2014
HELSINKI: Danfoss announces a public tender offer for all shares of the Finnish AC drives company Vacon. Vacon shareholders are being offered a cash consideration of EUR 34 for each share in Vacon, representing an aggregate equity purchase price of approximately EUR 1038 million.
"After a careful examination of Danfoss' offer, the Board of Directors of Vacon has unanimously decided to recommend that the shareholders accept it. Vacon is truly one of the great industrial success stories, even globally speaking. By joining forces, the two companies will create a Nordic-based global player - a new AC drives business with the clear ambition to build a leading position in the AC drives market," says Panu Routila, Chairman of the Board at Vacon.
The background for Danfoss' offer is the company's strategic focus on creating profitable growth. Vacon is a good match to achieve this ambition. Today, both Danfoss Power Electronics and Vacon are significant players in the AC drives business, and together they will gain an even stronger market position.
"We have a clear strategic ambition to be one of the absolute top players in the businesses where we operate. Vacon is a very strong and innovative player and by creating this new drives business we can ensure a strong long-term growth trajectory," says Niels B. Christiansen, CEO at Danfoss.
Vacon is a global company with exceptional R&D, production, and supply chain competences in China, Finland, India, Italy, and the United States, and a highly skilled sales and service organization in 31 countries. The company plays a crucial role in building a new AC drives business to challenge the top players in the world. Finland, as a hotspot in the global AC drives business, plays an especially crucial role and Danfoss will be positioning Finland as one of its future centers of excellence along with the other power electronics centers worldwide.
"I believe that customers will benefit significantly from the two companies joining forces as they will bring even more competitive, innovative, and attractive AC drives to the market. Today, Vacon is stronger than ever, and it has a great future ahead together with Danfoss," says Vacon's President and CEO, Vesa Laisi.
The offer is subject to e.g. approval by relevant authorities, such as competition authorities, and Danfoss gaining control of more than 90 percent of the Vacon shares.
A separate stock exchange release on Danfoss' tender offer was published earlier today and can be found at http://www.vacon.com.
Vacon in brief:
Vacon is driven by a passion to develop, manufacture, and sell the best AC drives and inverters in the world - and provide customers with efficient product lifecycle services. Our AC drives offer optimum process control and energy efficiency for electric motors. Vacon inverters play a key role when energy is produced from renewable sources. Vacon has production and R&D facilities in Europe, Asia and North America, and sales offices in 30 countries. Furthermore, Vacon has sales representatives and service partners in nearly 90 countries. In 2013, Vacon's revenues amounted to EUR 403 million, and the company employed globally approximately 1,600 people. The shares of Vacon Plc (VAC1V) are quoted on the main list of the Helsinki stock exchange (NASDAQ OMX Helsinki).
Driven by Drives, http://www.vacon.com
Danfoss in brief:
Danfoss engineers technologies that enable the world of tomorrow to do more with less. Danfoss meets the growing need for infrastructure, food supply, energy efficiency, and climate-friendly solutions. The products and services offered by Danfoss are used in areas such as refrigeration, air conditioning, heating, motor control, and mobile machinery. The company is also active in the field of renewable energy as well as district heating infrastructure for cities and urban communities. Danfoss' innovative engineering dates back to 1933 and, today, the company is a world leader, employing 22,500 employees and serving customers in more than 100 countries. The company is privately held by the founding family.
Further information:
⢠Danfoss Media Relations, telephone +45-70-20-44-88
⢠Sebastian Linko, Director, Corporate Communications and Investor Relations, Vacon Plc, telephone +358(0)40-8371-634, sebastian.linko(at)vacon.com
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