OSAKA -- Daikin Industries will acquire Italian refrigeration company Zanotti by June, gaining a European foothold for a business the company hopes to develop into a new earnings driver.
The Japanese air conditioner maker's European unit will pay around 12 billion yen ($107 million) to purchase all outstanding Zanotti shares from an asset management firm affiliated with the Italian company's top management.
Established in 1962, Zanotti boasts annual sales equivalent to 16 billion yen and a workforce of around 300. Its offerings include everything from refrigeration equipment used at food factories to chilling devices for shipping containers and solutions for retailers.
Acquiring Zanotti will give Daikin a sturdy foothold in the European market. The Japanese company will also be able to push Zanotti's products in areas such as Asia and the U.S. through sales channels developed by its air conditioner business. Tapping energy-saving inverter technology, Daikin plans to work with Zanotti to develop next-generation refrigeration equipment and take on Carrier of the U.S. and other global leaders.
Daikin in February announced it would acquire U.S. air filter maker Flanders Holdings for $430 million. It is stepping up purchases to fuel business growth.
The global market for products such as refrigeration and freezing equipment making up the so-called cold chain for food preservation is worth around 4 trillion yen. Aiming for global expansion, Panasonic, the Japanese market leader, decided to purchase U.S. rival Hussmann for $1.54 billion at the end of 2015.