Munters, a Swedish air treatment technology company, will use the Edpac acquisition to expand into the European market.
Irish data centre equipment manufacturer Edpac has been acquired by Swedish company Munters in a €29m deal.
Based in Carrigaline, Co Cork, Edpac manufactures cooling equipment and air handling systems for data centres in the European market, with additional sales in the Middle East, South America and Asia.
For Munters, which has significant operations in North America, the acquisition is an opportunity for it to expand in the European market. Once complete, the deal will see the transfer of Munters’ technologies and engineering capabilities to Ireland.
“The European data centre market is a prioritised segment for Munters, and the acquisition is a significant step in our growth strategy,” said Klas Forsström, president and chief executive of Munters.
Forsström said that Munters’ experience in the North American market will provide Edpac with “opportunities for further profitable growth” by collaborating on “technology development and establishing unified processes”.
Edpac has two manufacturing facilities in Ireland – Newmarket and Carrigaline – and employs around 150 people in the country. Currently a manufacturing partner for Munters, Edpac sees approximately 7pc of its revenue come from the sale of Munters products.
In the financial year ending April 2021, Edpac reported net sales of €17m and earnings before tax of €1.7m. According to The Irish Times, Edpac managing director Noel Lynch has led the company since it was bought from its Swiss parent in 1991.
“We are excited to welcome Edpac to Munters. Edpac brings an attractive, differentiated customer base and high-quality products,” Forsström said, adding that Edpac’s operating model “is a perfect match with Munters ways of working.”
Founded in 1955, Munters aims to create energy efficient air treatment technologies for customers in a wide range of industries. Listed on Nasdaq Stockholm, it employees 3,300 employees across 30 countries – with annual sales exceeding 7bn Swedish krona in 2020.
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