Compressor manufacturer Tecumseh agrees to merger with Mueller Industries

In a deal worth approximately US $123 million (€112.7 million), an affiliation between natural refrigerant equipment manufacturer Mueller Industries and Atlas Holdings will see the new venture acquire compressor manufacturer Tecumseh in a landmark deal.

Announced on 5 August, Tecumseh powerbrokers confirmed the company had entered into a definitive merger agreement.

The transaction, which is expected to be completed in late 2015, will bring together Tecumseh, a leading manufacturer of hermetically sealed compressors for residential and commercial air conditioning, refrigerators and freezers, with new owners.

The third prong of the deal is Atlas Holdings, who will contribute market and operational expertise, as well as capital.

As part of the deal, Tecumseh will remain a standalone business and continue to operate its global technology bases throughout North America, South America, Europe and Asia.

Tecumseh’s expertise with hydrocarbon refrigeration equipment will add a different arm to Mueller’s specialisation in manufacturing copper tubes, fittings, valves and protection devices for high-pressure applications like R744.

While Tecumseh will continue its main operations at its base in Ann Arbor, Michigan with considerable autonomy, it will become a privately held company and will be delisted from the NASDAQ stock market.

This will allow the company to focus on growing the business through launching new products and enhancing customer service levels. Tecumseh's senior management is expected to remain in place post transaction close.

"We look forward to working with Mueller Industries and Atlas Holdings to help us achieve continued growth as we provide our customers with innovative, best-in-class products and outstanding service and support," stated Harold Karp, President and Chief Executive Officer of Tecumseh.

Tecumseh’s other North American facilities include a plant and distribution centre in Tupelo, Mississippi, a motor plant in Paris, Tennessee, a production facility and offices near London, Ontario, Canada and a production facility in Monterrey, Mexico.

The company also operates manufacturing facilities in France, Brazil and India, employing approximately 7,300 people worldwide.

About Tecumseh

Tecumseh Products Company is an industry leader in developing compressors and condensing units that utilise hydrocarbon refrigerants R290 (propane) and R600a (isobutane). Tecumseh has been producing HC refrigerant-ready compressors for more than 12 years, mostly in Europe and South America. Today, its family of eco-friendly compressors numbers more than 150 models.

About Mueller Industries

Established in 1917, Mueller Industries is a leading manufacturer of copper tube and fittings, valves and vessels for the air conditioning and refrigeration industry. It has manufacturing and distribution facilities located across North America, UK, Mexico and China.