Symphony Signs Agreement To Acquire Climate Technologies
Symphony Limited announced that it has signed an agreement to effectively purchase 95% equity stake in Climate Technologies pty Limited ("Climate Technologies", or "CT"), Australia's leading manufacturer of cooling and heating appliances. The acquisition will be executed at a valuation range of AS 40-44 million (INR 201 crs - INR 22I crs) depending on the achievement of FY18F EBITDA (June ended). Further, the valuation is subject to change based on customary closing conditions. The Company plans to finance the acquisition through a judicious mix of debt and internal cash accruals.
Headquartered in Adelaide, South Australia, Climate Technologies manufactures and sells evaporative air coolers, ducted gas heaters, and other cooling products in Australia and USA. CT was established by Ted Celi in December 1976 and he & his family effectively own 90% equity stake while 10% stake is owned by Tim O' Leary, current CEO of the Company. With iconic brands such as 'Bonaire' (a history of 64 years) and 'Celair' (46 years), Climate Technologies is one of Australia's most recognized manufacturers and suppliers of cooling and heating appliances. CT commands 30% and 25% market share of the domestic Australian evaporative air coolers and ducted gas heaters market, respectively. CT forayed into the US markets through a relationship with Home Depot, who now considers CT as an innovator in its class.
CT's manufacturing facility is located in Salisbury, South Australia with an assembly operation in Las Vegas, Nevada.