GEA acquires British Denco Building Services Limited

Press Release

04. 10. 2006 Strategic acquisition rounds out the product portfolio of the GEA Air Treatment Division

GEA acquires British Denco Building Services Limited
GEA acquires British Denco Building Services Limited

As of October 2006 the GEA Group has acquired leading British building services company Denco, headquartered in Hereford, UK. The British company designs, manufactures, and markets precision and comfort air conditioning systems for industry, commerce, and home applications. During 2005 Denco, with its 380 staff and six sales offices in the UK, achieved sales of approx. 48 million euros. The addition of two Denco plants, in Hereford and Istanbul, now means that the number of production plants operated by the GEA Air Treatment Division has grown to a total of nine. This acquisition creates two significant new opportunities for the GEA Air Treatment Division:  first, access to the British market and, second, the possibility of synergies in Turkey. The second gain has become possible owing to the fact that the marketing company ISISAN, in which GEA became the majority shareholder in March of this year, is located in Istanbul.

As of October 2006, the company Denco Building Services Limited has become part of the GEA Group, where its range of precision and comfort air conditioning systems complements the product portfolio of the GEA Air Treatment Division.

Dr. Hugo Blaum, President of the GEA Air Treatment Division, said he was delighted with the acquisition of Denco:  “This allows us to expand our portfolio of products and services in market areas where we were hardly or not at all active.” The acquired business area of precision air conditioning, for example, provides access to the operators of computer and telecommunications centres in Europe, according to Dr Blaum . Dr. Michael Bauer, Chief Financial Officer of the GEA Air Treatment Division, is likewise pleased about the positive results of the negotiations:  “We are satisfied at the GEA Group to welcome Denco into our organisation. It is a company that has earned a solid reputation for itself in the UK, and that has established an excellent marketing and service network.”

Denco products and services are employed in commerce, industry, and housing, and are marketed under the names of Close Control, Comfort Zone, and 4Service. Close Control encompasses activities involving precision air conditioning for maintaining room temperature and relative humidity at constant levels, and providing dust-free air. Target customers include the operators of clean rooms, computer centres, telecom facilities, and similar plants:  i.e., operations for which achieving strict air quality parameters is critical for the processes involved. Drying systems for process air are also provided:  e.g., for applications required in gas-processing plants and refineries – and in the cooling of ambient air in the processing of foods and beverages. The Denco portfolio also includes a full range of comfort air conditioning, and consulting and installation services for a wide range of building services projects.

Products from the company’s Comfort Zone are applied in office buildings, hotels, and in housing.  They are primarily used to maintain the health and comfort of building occupants. In this segment, Denco’s specialist engineers support the operators of large buildings and the private homes owners. The Officecool system has given Denco access to a very exciting growth area in underfloor heating and cooling. This system takes advantage of the hollow spaces under raised floors, as they are commonly found in office buildings and computer centres, to deliver treated and tempered air to the occupied space. Architects and building owners appreciate the space savings achieved in this way, since they allow lower storey heights and, in turn, reduced construction costs. This system also offers greater flexibility, since it can be easily modified to adapt to changes in the layout of office floors and occupancy.

Under the name 4Service, Denco offers maintenance and repair services to all types of building services installations. The “4” stands not only for the four locations at which around 100 Denco technicians are based, but also for the reaction time:  the service can react within 4 hours to requests from any site in the UK. Through 4Service, Denco supports facilities for heating, ventilation, air conditioning, and refrigeration. “In addition, Denco develops customised air conditioning solutions for the British market,” added Dr. Frank Vossloh, responsible for sales in Western Europe, and member of the Board of Directors of the GEA Air Treatment Division.

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Nicole HückelsSenior Manager Press Relations and Trade FairsTelefon: +49 234 980 2584Fax: +49 234 980 34 2584
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