Amber Enterprises buys mobile refrigeration solutions co

Amber Enterprises buys mobile refrigeration solutions co

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Amber Enterprises, a contract manufacturer of air conditioners for leading brands,  has entered into a definitive agreement to acquire 80% share in Sidwal Refrigeration Industries Pvt Ltd and Sidwal technologies. Sidwal has a diversified portfolio of HVAC solutions for Indian Railways, Metro Segments, and Defense, and ACs for Telecom, Bus and Commercial Refrigeration segment. It has three facilities in north India that are capable of carrying out the end-to-end heating, ventilation and air conditioning (HVAC) manufacturing process in-house.

With this acquisition, Amber will get an entry into Mobile, Transportation and Commercial Refrigeration segments. In this segment, growth prospects for both Railways and Metro look strong.

Once completed, Sidwal will be Amber’s fourth acquisition in the last 7 years. It bought PICL in FY12, a motor company, to strengthen the products for its AC, cooler and other industry customers. Last year it bought ILJIN and Ever, both of which make PCBs. With these, Amber was able to capture the ongoing inverter AC market and also add other products like TVs/Washing machines/Refrigerators.

This acquisition will benefit from procurement leverage and also de-risk its seasonal portfolio.

The acquisition would expand Amber’s portfolio in the HVAC space in mobile applications. The deal is likely to be funded via a mix of internal accruals and debt.