Munters Corp. - Experts & Thought Leaders

Geoclima is excited to announce a significant milestone in its journey — Geoclima Group has been acquired by Munters Group, a distinguished Swedish firm founded in 1955 and listed on the large cap of Nasdaq Stockholm. This strategic acquisition represents a major step forward, unlocking immense growth opportunities for Geoclima in the dynamic data center market. Munters’ Data Center Technologies (DCT) Munters’ Business Area Data Center Technologies (DCT) specializes in creating advanced climate solutions for data centers worldwide. DCT has strategically added Geoclima’s high-efficiency chillers to its portfolio Renowned for innovative technologies such as evaporative cooling (e.g., Oasis) and pumped refrigerant systems (SyCool), as well as successful sales of computer room air handlers, DCT has strategically added Geoclima’s high-efficiency chillers to its portfolio. This addition fills a crucial gap, making it a perfect strategic fit for both companies. Munters acquires Geoclima This acquisition will significantly expand Geoclima’s presence in the broader data center market, offering growth opportunities far beyond its current footprint. With ongoing digitalization and the rise of AI, the data center segment is increasingly attractive for any chiller manufacturer. Scaling up to fully capture these opportunities in a competitive market requires smart, value-adding partnerships, which Geoclima has found through this acquisition. Focus on energy-efficient solutions Stefan Aspman, President of Munters DCT and Group Vice President of Munters Group, shared his excitement, stating: “The integration of Geoclima’s technology and talent with Munters is truly exciting. Both companies share a similar DNA, focusing on energy-efficient solutions tailored to meet customer needs.” Stefan Aspman adds, “Customer focus and innovation are at the core of both organizations, and with our combined team of talented and devoted individuals in heat transfer, refrigeration, engineering, and operations, the sky is the limit for what we can achieve together.” Partnership to enable new avenues for growth Joining forces will open new avenues for growth and success, providing a stronger foundation Geoclima understands that change can bring uncertainty, but this acquisition is about opening new doors of opportunity rather than introducing risk or dramatic change. The decision to sell the company at this point was made with careful consideration of timing, trust, and business rationale. Joining forces will open new avenues for growth and success, providing a stronger foundation for the future and creating exciting opportunities for everyone involved. Munters and Geoclima collaboration The official completion of the acquisition has been signed today, although certain customary closing activities still need to be finalized. During this period, Munters will continue to work closely with Geoclima to determine a firm closing date, likely by the end of September.

Munters has acquired EDPAC, an Ireland-based manufacturer of data center cooling equipment and air handling systems for a purchase price of MEUR 29. The acquisition is part of Munters' strategy to grow in the prioritized data center segment. Munters is a pioneer of energy-efficient data center cooling solutions in North America and strengthens its presence in Europe through the acquisition. About EDPAC EDPAC reported net sales of MEUR 17 and an adjusted EBITDA of MEUR 1.7 in the financial year ending April 2021. The company is headquartered in Carrigaline, Ireland with two manufacturing facilities in the country and has about 150 full-time employees. EDPAC has a strong customer base with sales primarily in Europe with additional sales in the Middle East, South America, and Asia. The European data center market represents a sizeable, growing, and attractive market opportunity for Munters. Munters has a winning value proposition in the North American data center market and with the acquisition, Munters will transfer proven technologies and engineering capabilities to Ireland. Expanding data center offering The European data center market is a prioritized segment for Munters and the acquisition is a significant step" “The European data center market is a prioritized segment for Munters and the acquisition is a significant step in our growth strategy“, comments Klas Forsström, President and CEO of Munters. “Our competencies and experiences from the North American market will provide EDPAC with opportunities for further profitable growth. We foresee synergies by expanding our data center offering to Europe and by coordinating technology development and establishing unified processes.” Cooling and air handling systems  EDPAC manufactures precision cooling equipment and various air handling systems and is also a manufacturing partner for Munters Oasis systems. Sales of Munters products represent approximately seven percent of EDPAC’s total revenues. The acquisition brings complementary products to Munters current data center offering. “We are excited to welcome EDPAC to Munters. EDPAC brings an attractive, differentiated customer base and high-quality products”, adds Klas Forsström. “In addition, EDPAC’s operating model is a perfect match with Munters ways of working.” The consolidation will take place from the day of the acquisition. The acquisition will not have a significant impact on Munters earnings per share in a current financial year.

In an effort to strengthen its AirTech business and sharpen alignment with its strategic objectives, Munters, a globally renowned company in energy efficient air treatment and climate solutions, will exit the non-core part of the commercial desiccant dehumidification market. This decision primarily affects the U.S. market as it is the primary region where Munters’ commercial products are sold. Desiccant dehumidification units Commercial products have been manufactured in the company’s Selma, Texas plant. This facility will now manufacture desiccant dehumidification units for key account customers only. This will allow the facility to return to its legacy strength of delivering high-volume, pre-engineered solutions for this customer type. Additionally, the Texas plant will provide needed production capacity for the increased demand for Munters cooling solutions for the data center market. The segments of healthcare, ice arenas and laboratories and archival preservation, associated with universities and colleges previously served through Munters’ commercial product offering, will now be served through its industrial product offering. These systems are manufactured in the organization’s Amesbury, Massachusetts location. Focus on Evaporative Cooling, Innovation and Service The decision to depart commercial markets is one that did not come quickly or easily for Munters" “The decision to depart commercial markets is one that did not come quickly or easily for Munters. However, this will allow us to focus not only on key accounts, but also on markets such as food, pharmaceutical, lithium battery, evaporative cooling and Munters Innovation and Service,” said Andrew Cook, Vice President for Sales & Services Americas Business Area AirTech, Munters. Munters U.S. products are sold through third-party representatives, and those selling the commercial dehumidification product lines have been informed of the company’s pivot away from these products. product development and energy efficient products All accepted commercial product orders with shipment dates on or before December 31, 2020, will be honored and Munters is committed to working closely with representatives during the transition period. The discontinued relationship with representatives will not impact any of Munters’ warranty obligations for previously sold products. As part of this initiative, Munters does not foresee any major changes to its supply chain in the U.S. It remains committed to product development and profitable support and sale of energy efficient and innovative products. However, some products will be discontinued and adjustments to demand forecasts will be made accordingly. Contacting suppliers impacted by changes is underway. “Throughout the evaluation, deliberation and analyzation process of arriving at this decision, top priority was given to retaining as many employees as possible. For positions being eliminated, it was of the utmost importance to make every effort to find other roles within the organizations for impacted employees,” added Cook.