Daikin Europe to Acquire German Heating Manufacturer Rotex

On August 29, 2008, Daikin Europe N.V., a 100% subsidiary of Daikin Industries Ltd.,Osaka, Japan, announced an agreement with the principal shareholders to acquire 100% of the Rotex Group Companies, Güglingen, Germany. Rotex is engaged in the production and distribution of heating products and complete heating systems. This acquisition – subject to the approval of the anti-trust clearance authorities in Germany – strengthens Daikin’s product profile and market presence in its heating segment. The final transfer of business is expected to take place by 1October 2008.

Product line and sales network synergies

The acquisition of Rotex will contribute significantly to Daikin’s strategy to expand its heating business alongside its other strategic business pillars of air conditioning, applied systems and refrigeration.

The European heating market is currently undergoing a structural change in that driven by higher gas and oil prices and changing legislation, the share of renewable and energy efficient heating sources is rapidly increasing. Supported by government incentives in most EU countries, heat pumps and solar panels are becoming well established technologies. Daikin entered the European heating market two years ago with its innovative ‘Altherma’ air to water heat pump, based on advanced Daikin heat pump technology.

The Daikin heat pump range will now be complemented by Rotex heating solutions, which consist of efficient boilers and solar and under floor heating. Rotex meanwhile, will gain the opportunity to integrate an air to water heat pump boiler with these advanced heating solutions. Furthermore, it will also enable the integration of both companies’ heating ‘know how’ and thus expand their dedicated heating portfolios. Finally, the acquisition of Rotex will contribute further to Daikin’s environmental strategy of promoting energy efficient building climate solutions.

Rotex Heating Systems GmbH -- leader in hybrid installations

Rotex, based in South Germany, is a medium sized heating company with 360 employees engaged in the production and distribution of heating products in Europe. Established in 1973 by Herr G. Rambacher, Rotex is renowned as a technology leader for advanced heating solutions combining highly efficient hybrid systems of gas/oil/bio-oil condensing boilers and solar panels. The product range is completed by a domestic hot water tank and under floor heating. Rotex offers a complete hybrid heating system with the choice of traditional and renewable energy sources for customised solutions. In addition to Germany, Rotex has sales affiliates in the main heating markets of Italy, France, Spain, UK and Poland and in 2007, had a turnover of 62.7 million euro.

Daikin Europe N.V. -- advanced climate control products and services for Europe, Africa and the Middle East

Daikin Europe N.V., Ostend, Belgium has more than 4,000 employees and is the sales and manufacturing headquarters for Europe, parts of Africa and the Middle East. Daikin Europe was established in 1972 and over the years has grown into the most advanced comfort climate plant in Europe. A comprehensive range of heating, air conditioning and refrigeration products and systems for commercial, residential and industrial applications is produced and supplied from the Ostend plant, supported by two factories in the Czech Republic. In 2007 Daikin Europe enjoyed sales of 1.9 billion euro.