Following detailed study and consideration, the European Commission has approved the acquisition of ECO SpA, the world’s foremost manufacturer of heat-transfer coils and coolers, by Luvata, on condition of divestiture of Luvata Czech SRO. The deal will be closed on August 23rd.

The ECO Group currently employs about 2,400 staff and reported net sales of 325 million euro in 2006. Its established position in Europe and growing presence in Asia complements Luvata’s similar position in North America and Asia through its Heatcraft business. The global HVACR equipment market, which they serve, is estimated to be worth in excess of 60 billion dollars. Luvata will be divesting its operation in The Czech Republic - Luvata Czech SRO - with immediate effect, reveals the company’s press release. The business will run as a standalone operation with its own, independent sales and management structure until a buyer is found. Luvata will channel its sales and customer enquiries for that region and market sector through its current operation in Torreglia, Italy. 

John-Peter Leesi, CEO and President of Luvata, commented: “The acquisition represents a big step forward for Luvata and we’re happy with the EU approval. Obviously, a healthy market cannot exist without fair competition and so we respect the judgment and wish the best of futures to our former Czech company, which, I hope, will continue with the Luvata tradition that has made it so successful. In no way does it detract from what a major, positive step the ECO SpA acquisition is for Luvata and for the industry.”