Munters has signed an agreement to acquire ZECO, an Indian manufacturer of air treatment solutions. ZECO will provide Munters with a strong platform to expand its de-humidification offering in the Indian market.
Munters Group (MTRS), a global leader in energy-efficient air treatment and climate control solutions, has signed an agreement to acquire ZECO, an Indian manufacturer of air treatment solutions for an estimated enterprise value of MSEK 790.
The Indian market for de-humidification solutions is characterized by attractive market fundamentals with solid growth in Munters prioritized industrial segments of Battery, Food processing and Pharma. The combined offering of Munters and ZECO positions Munters to grow with market leading products and complete solution sales.
“ZECO is an excellent addition to Munters and constitutes an important step in developing our de-humidification business in India. I am very pleased to announce this agreement which supports Munters growth journey,” says Klas Forsström, President and CEO of Munters.
The company has three manufacturing facilities across north, west, and southern regions of India and a widespread network of sales offices across key regions in India, providing Munters with a strong platform for growth.
“The acquisition adds complementary products to our core offer. With our combined product offering and extensive sales network, we will strengthen our position in several customer segments with strong growth in the Indian de-humidification market,” says Henrik Teiwik, President of AirTech and Group Vice President, Munters Group.
ZECO reported net sales of about MSEK 510 for FY 2022/2023, ending on the 31st of March 2023. The reported EBITA-margin is accretive to the Munters Group. The proposed acquisition will be fully financed through existing credit facilities. The privately owned company, ZECO Aircon Limited, established in 1989 and headquartered in Gurgaon, provides air treatment solutions to a customer base in India across various industries.
Closing of the acquisition is subject to customary closing conditions applicable in India. The deal is expected to be completed before year-end closing.