Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Daikin Goes Global in Plan to Acquire McQuay/OYL
May 18, 2006
 Printable format
 Email this Article
 Search

Daikin Industries, Ltd. (Osaka, Japan) said today it would acquire O.Y.L. Industries Bhd., based in Kuala Lumpur, Malaysia. OYL is a global HVAC producer and owns McQuay International (formerly SnyderGeneral Corporation, acquired in 1994).

The acquisition would vastly expand Daikin, which is regarded as the largest HVAC maker in Japan. Daikin says OYL is the fourth-largest Applied (large-scale commercial) air-conditioning equipment maker in the world and the third-largest commercial air-filtration manufacturer in the world, with revenue of approximately 168 billion yen (approx. $1.5 billion) and operating profit of approximately 11.5 billion yen (approx. $103 million) for the fiscal year ending June 30, 2005.

Daikin Number 2 After Carrier?

Combining Daikin and OYL will create the second-largest global air-conditioning OEM, according to many industry watchers - behind only Carrier Corporation (Farmington, Connecticut, U.S) and ahead of former number 2, American Standard's Trane.

Daikin said that its strength in ductless air-conditioning products, especially in high-value-added air-conditioning, would be augmented by OYL's strength in the Applied business segment, as well as its low-cost HVAC products made possible by its mass-production capability.

Regionally, Daikin has leading positions in Japan, Europe and Asia, while OYL has a solid presence in Asia and North America. Daikin says the acquisition will help it expand in what it calls the Global Eight Regions of Japan, Europe, Asia/Oceania, China, North America, Latin America, India, and the Middle East/Africa.

Two-Step Acquisition

Daikin will buy a 100-percent share in the business and concluded share purchase agreement with principal shareholders. Daikin expects to pay 5.73 MYR (Malaysia Ringgits) (approx. U.S. $1.59) per OYL ordinary share, for a total of approximately 7.608 billion MYR (approx. $2.11 billion).

The acquisition is expected to proceed in two steps. Daikin will initially purchase OYL shares through direct business transactions with two parties. One party is the largest OYL shareholder, Hong Leong Secretarial Services Sdn. Bhd., part of Malaysian investment holding group Hong Leong Group (Malaysia), with approximately 40 percent of OYL's outstanding shares. The second party is OYL President and CEO Liu Wan Min, with approximately 5.2 percent of OYL shares. The purchase price for the combined 45.2-percent stake is approximately 3.441 MYR billion (approx. $955 million).

The second step of the acquisition will entail the launch of Mandatory General Offer (an MGO, or public tender offer in Malaysia) for remaining OYL shares from other public shareholders. The price paid in the MGO will be 4.167 MYR billion (approx. $1.156 billion), if all remaining OYL shareholders accept the offer.

The acquisition is subject to approval by Malaysia as well as antitrust clearance in relevant countries. The stock purchase from Hong Leong Secretarial Services and from OYL's Liu Wan Min is due at the beginning of July 2006, and settlement for tendered shares by other OYL shareholders under the MGO is due at the end of September 2006.

Back to Daily News

 

Daily News

...........................................................

Dec 17, 2014: Bosch names Kenny head of marketing

Dec 17, 2014: Multifamily Production Index off its peak, but still positive

Dec 17, 2014: AHRI launches two new certification programs

Dec 16, 2014: Ar├želik awarded for fridge with integrated ice-cream bowl

Dec 16, 2014: Report: appliance segment at the top of 2014 reshoring list

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

November 2014: Appliance Magazine Market Insight Annual Subscriptions
November 2014: U.S. Appliance Industry: Market Value, Life Expectancy & Replacement Picture 2014
October 2014: Portrait of the European Appliance Industry
September 2014: Appliance Industry Focus: HVAC




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows