The Israeli air conditioner maker is to acquire a U.S.-based manufacturer for an undisclosed amount
A major Israeli air conditioning manufacturer is to buy a U and A-listed company for $9 million, in a deal that will also involve a takeover bid.
Alcoa said Thursday that it had secured a 20% stake in Amarillo, a New Jersey-based manufacturer of air conditioners and refrigerators, and plans to use the cash to expand its business and expand its U.K. operations.
AlCOA said Amarillos air condition system, which sells to about 1,600 customers in the U.N. Food and Agriculture Organization and about 10,000 customers worldwide, was a key element of its global supply chain.
The deal is expected to close by the end of the year, the company said in a statement.
The new company, which will operate as Alcoa, will work on the U, A and C-listed brands, with the U-listed brand becoming the largest shareholder in the new company.
AlCoa said it has been working closely with Amarilla, a joint venture between Amaranth and a German engineering firm, since the U&A deal was announced.
“The Alcoas team is looking forward to building on the great synergy between Amarillus and Alcoaxia,” the company wrote in a blog post.
“The merger will allow Alcoastal to focus on its mission to improve the quality and efficiency of air conditioning in Israel, and will enhance the quality of the global supply of Amarilly Air Conditioners.”
The new Israeli company will be based in Tel Aviv, with a total workforce of 50, Alcoamass said.
The Amaranic, a name for a type of air condenser, is among the most popular types of air-conditioning equipment in Israel.
Almo has more than 30 million customers worldwide and makes the most sophisticated air conditionors and refrigeration systems, including units that can be operated remotely and from inside buildings.
In January, Almo was sold to American electric-car maker Tesla Motors Inc. for $465 million.