International. Ingersoll Rand announced the signing of an agreement to acquire Frigoblock, a transaction that had a value of 100 million euros. The acquisition is expected to close in the first half of 2015, subject to regulatory approval.
Frigoblock is a company that manufactures and designs refrigeration transport units for trucks and trailers in Europe, sold mainly in the north of that region. It operates in Essen, Germany, and employs around 150 employees. Frigoblock's annual revenue is approximately €42 million. With this acquisition, Ingersoll Rand expects to increase its earnings per share, EBITDA margins and Return on Invested Capital (ROIC) in its first year of operation.
Ingersoll Rand reported that once the transaction is completed, Frigoblock will become part of the transportation solutions business, entering the market as Thermo King. The acquisition will add to Thermo King's strength in delivering safe, reliable and efficient transportation temperature control systems for a variety of mobile applications.
"Frigoblock uses innovative technology to offer products with low fuel consumption and silence, which decreases the environmental impact and creates a differentiation in the market. Frigoblock products are known for their reliability and for being built with high quality," said Ray Pittard, president of Transportation Solutions for Ingersoll Rand. "This opportunity will allow us to offer our customers in Europe and globally, hybrid and non-diesel technology, through our robust Frigoblock channels."
"We are very pleased with the perspective that Frigoblock gives us by joining the Ingersoll Rand family of brands. I wanted Frigoblock to join a corporation with similar values, such as innovation, integrity and customer-oriented," said Peter Grosskopf, founder and chief technology officer of Frigoblock. I believe Ingersoll Rand will preserve what we create and Frigoblock will be able to have a greater impact on the industry as well as add greater value to our customers when it becomes part of Ingersoll Rand."
