MANILA, Philippines - Appliance maker Concepcion Industrial Corp. (CIC) is venturing into escalators and elevators through its first acquisition deal since listing in the local bourse last year.
In a disclosure, the company said its board of directors approved the acquisition of shares in Otis E&M Co. Philippines Inc.
Concepcion Carrier Air Conditioning (CCAC), a joint venture between CIC and Carrier Air Conditioning Philippines Inc., will acquire Otis and then partner with United Technologies Corp.
“The acquisition of Otis will strengthen CIC’s building and industrial solutions segment, creating added synergies and a new strategic growth platform aligned with a global brand and building solution trends,†CIC said.
Otis is one of the country’s leading providers of elevators and escalators. Established in 1935, it is the first elevator company in the Philippines.
CCAC will include the sale and service of elevators, escalators, moving walkways and shuttle systems in its business profile.
At the same time, the board of directors approved yesterday the declaration of P154.13 million in cash dividends or P0.59 per share to stockholders as of April, payable on April 30.
In January to September last year, CIC’s net income climbed 14.7 percent to P607.8 million while net sales jumped 15.4 percent to P5.6 billion.
The strong performance was driven primarily by an accelerated expansion in the airconditioning part of the business.
In November, the appliance maker listed in the local bourse following a P1.949-billion initial public offering.
Late last year, CIC subsidiary CCAC signed a deal with Midea Electric Trading (Singapore) Co., Pte. Ltd., a wholly-owned subsidiary of Singaporean appliance giant Midea Group.
The deal allowed CIC to expand its business to other white consumer goods like ovens, microwaves, cooking ranges, electric fans and washing machines. CIC can now distribution products of original equipment manufacturer Midea Group in the Philippines.
CIC is a market leader as it corners 36 percent of the local airconditioner market and 26 percent for refrigerators. Of its business, 72 percent is derived from airconditioners and the remaining 28 percent is accounted for by refrigerators.