News is breaking that Nikkiso Co., has completed its 100% takeover of Cryogenic Industries Holdings, Inc. in a deal worth around $440m.
Nikkiso’s Board of Directors concluded a share purchase agreement on 20th April, which saw the Tokyo-based corporation acquire 100% of Cryogenic Industries’ shares.
Cryogenic Industries houses ACD LLD, Cosmodyne LLC, Cryoquip LLC and Cryogenic Industries AG (CIS). Collectively, the group is one of the world’s leading players for a wide range of products and services for liquefaction and separation plants for air gases and small-scale liquefied natural gas (LNG) liquefaction plants.
Under the deal, Nikkiso will acquire all four companies and their 18 respective subsidiaries. Combined, the group turned over $156m in consolidated revenue in 2016 and owns $144m in net assets.
Nikkiso’s objective is to offer products and services which offer advanced original technology to focused market segments.
Aside from expected market development, this acquisition will offer the joint group of Nikkiso companies going forward significant opportunities for alignment of activities and efficiency improvements.
President and CEO of Nikkiso, Toshihiko Kai, said the acquisition will strengthen the company’s global presence through Cryogenic Industries’ strong position in North America, adding, “It will provide an excellent complementary fit for Nikkiso group’s global base for production, which will allow us to gain efficiency improvements and balance currency effects.”
“As a joint group of companies, the setup will allow us to have customer focused centers around the globe that will be in position to support the entire range of Nikkiso group products.”
A substantial part of the strategic growth plan, beside diversification and innovation, is to benefit through individual strong market positions of each group in Japan, the United States, Europe, China and India.
Ross Brown, Chairman and CEO of Cryogenic Industries, commented, “We look forward to working with Nikkiso to continue enhancing and expanding our global cryogenic technology offerings and realize opportunities in an aligned global group.”
A press release said each of the branded companies will act as a distinct entity with its own focus and targets. Nikkiso group will utilise and further develop the synergies of service capabilities, common market approach and logistics across all product groups and companies.
Cryogenic Industries will continue to operate from California, US.