Alfa Laval acquires niche company…?

The press announcement is fairly bland, but is presumably required by the stock market requirements as the Group has acquired an independent company. But the interesting part is that the company is not named, and the geographic location is not given. The statement says:

“Alfa Laval Group – a world leader in heat transfer, centrifugal separation and fluid handling – has acquired an aftermarket company, specialized in separation technology. The company will remain a separate organization and offer its own parts and services under its own brand name. Revenues are estimated to reach about SEK 50 million this year and the company is consolidated as from July 3, 2015.

“The acquisition is in line with the strategy of the Alfa Laval Group of acquiring companies that complement the existing business in terms of products, geography or in the form of new sales channels. In this case the Alfa Laval Group adds a complementary aftermarket channel.”

Lars Renström, President and CEO, added: “With the acquisitions we are adding presence in an important niche of the aftermarket”. Possibly the plural of ‘acquisitions’ refers to other previous acquisitions, such as in South Korea. At SEK50m in forecast sales, the company is small, as this is only about USD6m sales in a year. But Alfa Laval add another interesting aside, stressing the value of the aftermarket sector, which was: “Did you know that… the value of the aftermarket for separation is estimated to be four times the value of new sales?”