Concepcion Industrial Corp. (CIC) has agreed to buy 51 percent of Otis E&M Company Philippines, Inc., paving the way for the listed appliance maker’s entry into the local manufacture of elevators and escalators.
Officials of the two companies signed the acquisition agreement yesterday.
CIC chairman and chief executive officer Raul Concepcion said having a global brand such as Otis will bolster his group’s stature and portfolio while facilitating CIC’s foray into building and industrial solutions.
On its website, Otis Elevator Company describes itself as the world’s leading manufacturer, installer and maintainer of escalators, elevators and moving walkways. It has manufacturing facilities in the Americas, Europe and Asia, and is a unit of United Technologies Corporation. Its revenue in 2007 reached US$11.8 billion, with the bulk generated outside the United States.
Otis set up its unit in the Philippines 35 years ago and it is now one of the country’s leading providers of elevators and escalators.
CIC subsidiary Concepcion Carrier Air Conditioning Company (CCAC) is taking the majority stake in Otis Philippines that Otis Elevator Company parent United Technologies has agreed to sell.
Concepcion said CIC is moving toward a global end-to-end building solutions trend through the building and industrial solutions group (BIS) that it has set up.
CIC will put its heating, ventilation and air conditioning businesses, as well as the operations of Otis, under the newly created BIS group.
In a disclosure last week, CIC said its board of directors has approved the acquisition of shares in Otis.
CIC, which produces and sells air-conditioning and refrigeration appliances, raised about P1.9 billion from its listing on the Philippine Stock Exchange late last year. Immediately after the listing, it entered into a distribution agreement with international appliance maker Midea.
A month after its listing, CIC reported P600 million in net profit between January and September last year, up 15 percent from the same period a year earlier.