Munters, a global leader in energy-efficient air treatment and climate solutions has signed an agreement to acquire ZECO, an Indian manufacturer of air treatment solutions. The later will provide Munters with a strong platform to expand its dehumidification offering in the Indian market. The estimated enterprise values of MSEK 790.
The Indian market for dehumidification solutions is characterised by attractive market fundamentals with solid growth in Munters prioritised 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.
Klas Forsström, President and CEO of Munters, said, “ZECO is an excellent addition to Munters and constitutes an important step in developing our dehumidification business in India. I am very pleased to announce this agreement which supports Munters growth journey.”
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.
Henrik Teiwik, President of AirTech and Group Vice President, Munters Group, says, “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 dehumidification market.”
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.
