VBG is buying the climate control business from investment company Ratos for SEK 1,790 million and the deal is expected to conclude later this month.
Most of VBG’s business is in Europe, while MCC has a stronghold in North America, giving an “improved geographic balance in the group”, according to a VBG statement. There are also thought to be opportunities for synergies between MCC and VBG Truck Equipment, the group’s largest division.
In a statement on its website, VBG says the main opportunities will be in the buses segment, which is MCC’s largest market. Growth in this segment is expected to be driven by increased demand for the number of vehicles, higher penetration of climate systems in vehicles and the transition to hybrid electric engines, which will require new technology for climate control systems.
Anders Birgersson, VBG Group’s managing director and CEO, says: “The acquisition of MCC is a highly significant business transaction that represents a new chapter in VBG Group’s history. MCC is a well-managed company that meets all of the criteria of our acquisition strategy and the company is active in segments with favourable growth potential moving forward.”
Long-term synergies will be possible in new markets, particularly Brazil and China, he adds.
MCC will form a separate division in VBG Group and will be led by MCC’s current CEO Clas Gunneberg, who will also become a member of VBG Group’s management group.