Hitachi is to buy compressor manufacturer Sullair from Accudyne Industries for US$1.245 billion.
The deal gives Hitachi portable compressors as well as a much strong presence in North America. Sullair will become part of Hitachi’s Industrial Products Business Unit.
Hitachi said a key motivator for the acquisition was Sullair’s global sales network, mainly in North America. It also said it would use the acquisition to expand its digital technology and Internet of Things solutions to Sullair customers.
The acquisition will give Hitachi portable compressors for the first time. Its product range is dominated by stationary compressors used in industrial applications, while around 20% of Sullair’s business is for portable units.
Mazakazu Aoki, Executive Vice President of Hitachi and CEO of the Industrial Products Business Unit, said; “Through this fusion with Sullair’s strengths, Hitachi will increase its competitiveness and strengthen the air compressor business, and at the same time, by utilising Sullair’s global footprint, mainly in North America, we will accelerate the global roll-out of the Social Innovation Business [Hitachi’s term for innovative technologies, including digital].”
The CEO of Accudyne, Charles Treadway, said the company was pleased with the deal “as the combination represents a uniquely attractive opportunity for Sullair, its employees, distributor partners and end-customers.”
Sullair’s President, Jack Carlson, said; “We are thrilled by the prospect of partnering with Hitachi to grow Sullair as we embark together on the next chapter in our proud history.”
Sullair employs 890 people and is based in Chicago, USA. It has manufacturing sites in the US (Michigan City) and China (Shenzhen), and 200 distributors in North America and 50 in China. Its revenues in 2016 were around US$390 million, of which less than a quarter represented the mobile compressors that are used in construction and rental.
More than half of Sullair’s sales are in North America, with China and Australia representing approximately a quarter of its business.