The purchase of the Prague facility for an undisclosed sum was completed by LEEL’s Special Purpose Vehicle (SPV) Lloyd Coils Czech. It is the company’s first step into the European market for heating, air-conditioning, refrigeration and air-treatment products.
A company spokesman said: “LEEL has acquired Luvata czech to provide a strong foothold into the European markets”
LEEL views the European market as fragmented and believes it can take advantage of the growing trend towards outsourcing specialised manufacturing processes such as coils
Brij Raj Punj, LEEL chairman and managing director,, said, 'We are very excited about this acquisition. Luvata Czech, represents a unique opportunity in the European market, offering LEEL entry into the attractive, regulated, high growth finned pack heat exchanger market in Europe.”
John-Peter Leesi, Luvata’s Chief Executive Officer and President, said: 'The acquisition represents a big step forward for Luvata and we're happy for the interest shown by Lloyd Electric and Engineering.
“Our goal at Luvata has always been to help our customers to improve their operational efficiency, enhance their products and reduce their tied up capital. I am sure that LEEL has similar commitments.'
The 300-employee plant was released by global manufacturing group Luvata in August last year following its acquisition of ECO SpA, a leading manufacturer of heat-transfer coils and coolers.
Due to concerns over maintaining fair competition within the market the European Commission told Luvata it could not keep the Prague operation within its business.
Since then the Prague facility has been running as a standalone operation with its own, independent sales and management structure while awaiting a buyer.
Commenting at the time of the Commission’s ruling, John-Peter Leesi, Luvata’s chief executive officer and president, said: “A healthy market cannot exist without fair competition and so we respect the Commission’s judgment. We wish the best of futures to our former Czech company under its new owners and I hope it will continue with some of the Luvata tradition that made it so successful.”