Hitachi entered into an agreement with Accudyne Industries to acquire air compressor manufacturer Sullair for an agreed purchase price of $1.245 billion.
Hitachi’s goal in this acquisition is to gain access to Sullair’s global sales network, mainly in North America. Furthermore, Hitachi will accelerate the global rollout of its social innovation business by providing Sullair’s customer base with digital solutions or IoT-compatible products that leverage the expertise in IT and OT (operational technology) which Hitachi has cultivated over many years.
Air compressors have been positioned as a core business for Hitachi, which plans to add its products to Sullair’s complementary product lineup, utilize the global sales network Sullair has established, mainly in North America, and increase the scale of the air compressor business.
Since its foundation in 1965, Sullair has sold air compressor products on a global scale. Sullair has established a strong sales network and customer base especially in North America. Accudyne has selected Hitachi as the best partner to ensure long-term success of Sullair given its sales network in Japan and Asia as well as the complementary relationship.
Masakazu Aoki, executive vice president at Hitachi and CEO of the industrial products business unit, said, “I am very pleased to announce that Hitachi has today agreed with Accudyne to proceed with the acquisition of Sullair, a leader in the air compressor business. Through this fusion with Sullair’s strengths, Hitachi will increase its competitiveness and strengthen the air compressor business, and at the same time, by utilizing Sullair’s global footprint, mainly in North America, we will accelerate the global rollout of the Social Innovation Business.”
Charles Treadway, CEO of Accudyne, said, “We are very pleased with the transaction, as the combination represents a uniquely attractive opportunity for Sullair, its employees, distributor partners and end-customers.”
Jack Carlson, Sullair president, said, “We are thrilled by the prospect of partnering with Hitachi to grow Sullair as we embark together on the next chapter in our proud history.”
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