Gardner Denver Inc, Quincy IL, has entered into separate share purchase agreements with the holders of 100 percent of the outstanding shares of CompAir Holdings Ltd, Redditch, United Kingdom, a global manufacturer of compressed air and gas solutions, according to Gardner Denver information.
The transaction is expected to close in the fourth quarter of 2008. CompAir operates through three business divisions: Industrial, Hydrovane, and Reavell. The Industrial division manufactures an extensive range of products, including oil-injected and oil-free rotary screw compressors, piston compressors, and portable rotary screw compressors. The products are used in oil and gas exploration, mining and construction, power plants, and general industrial applications.
The Hydrovane division is a leading manufacturer of rotary vane compressors used in OEM applications such as snow-making and mass transit, and general industrial applications.
Reavell is a manufacturer of high pressure reciprocating compressors producing air at delivery pressures in excess of 400 bar. Reavell's compressors are used in applications such as compressed natural gas, industrial gases, breathing air, and in naval, marine, and defense market segments. "CompAir is an exciting strategic acquisition for Gardner Denver. The company has a reputation for high-quality, innovative products and best-in-class customer service, which strongly complements Gardner Denver's existing operations," said Barry L Pennypacker, Gardner Denver's president and chief executive officer. "With more than three-quarters of CompAir's sales in Europe and Asia, this transaction extends the geographic availability of Gardner Denver's products and significantly enhances our channels of distribution to serve the global market. By blending the complementary product lines and geographical reach of CompAir and Gardner Denver, the combined business will be well positioned to take advantage of future growth opportunities for its products, services, and people."
CompAir serves a diversified, global customer base of distributors, OEMs, end users, and engineered system customers with a relationship strategy focused on product innovation and value-added designs. The company addresses its global markets through a network of wholly-owned sales offices, local sales and service branches, and a number of independent distributors and agents worldwide. Its primary manufacturing facilities are located in Simmern, Germany; Ipswich and Redditch, United Kingdom; Ocala FL; and Shanghai, China.
"Over the past several years, CompAir has achieved numerous successes in product development and operational improvements, which has provided a solid platform for growth," said Pennypacker. "We believe there is more opportunity to grow the profitability of this business post-transaction through lean enterprise techniques, low cost country sourcing, and capturing integration synergies."