Carel has signed a binding agreement for the acquisition of 51 per cent of CFM Soğutma ve Otomasyon A.Ş., a long-standing distributor and partner in Turkey as well as a provider of digital and on-field services and complete high added value solutions dedicated to OEMs, contractors and end-users in the Turkish HVAC&R market.
The deal is expected to be finalised by the end of July 2021 and is valued at €23.1 million euros (AU$35.9 million). There is an option for Carel to acquire the remaining 49 per cent of CFM between 2024 and 2027.
CFM’s workforce, based in the 6,500m2 Izmir facility, numbers 34 people, half of whom are part of the technical and engineering team.
According to Carel, CFM has major expertise in thermodynamics, mechanics, control and connectivity, and offers complete solutions, starting from system design and technical support during the start-up phase of plants to remote monitoring and supervision services.
“The offer, which is based on the proposal of the best brands and includes software development and customisation, customer training in its academy as well as energy management services, allows CFM to stand out significantly,” says Carel.
“CFM has created a unique business models demonstrated by its high rate of customer loyalty, its long-standing relationships with the country’s main retail chains and its particularly high profitability.”
Carel says the transaction is aligned with two of its key strategic directions: geographical expansion outside western Europe and the development of the services business, both on-field and digital.
“The acquisition will allow Carel not only to establish a direct presence in the important Turkish market and to have a solid platform at the service of the development of the Middle East,” says the company, “but also to adopt this distinctive business model, characterised by a wide range of complementary services, and to further develop its potential in synergy with its hardware, IoT and thermodynamic competences. After having established its success in the refrigeration sector, CFM has in fact extensive growth potential for the future also in air conditioning and humidification.”