No changes expected as Daikin acquires Flanders

Published 6:40 pm Monday, February 15, 2016

Daikin’s acquisition of the Washington-based Flanders Corp. is not expected to bring changes to the business, according to Brenda Davis, senior vice president of human resources.

Daikin, a Japanese company, will close the more than $430 million deal by April.

Davis said there would be no layoffs or changes in administration, as Daikin executives want Flanders to maintain its usual operations.

“We will continue manufacturing, I mean, business as usual,” she said. “That’s what they want us to do. … They really like our business model.”

Flanders Corp., founded in 1950, is one of the largest manufacturers of air filters in the United States, filters that are used for residential and commercial purposes. The company has seven locations around the world.

Daikin is the world’s leading commercial air conditioning manufacturer, and the acquisition of Flanders will make them the leading manufacturer in the United States, as well. It is also expected to increase the projected sales up to $1.12 billion.

“Flanders is particularly adept in products with high functionality and high value-added that are used in industrial cleanrooms such as those in the fields of pharmaceuticals and food processing. The company boasts a broad lineup ranging from commercial to residential use and a nationwide sales network,” a Daikin press release stated. “With this acquisition, the Flanders business will be integrated into AAF (Daikin’s subsidiary American Air Filter Company Inc.), and enable AAF to leverage its global sales network to market the cleanroom equipment and high-end air filter products that are the strengths of Flanders.”

Davis said she thinks the deal will be positive for the growing business, as well as its workforce.

“It’s just going to make it better for our employees here,” she said. “There’s power in numbers.”

A similar situation happened in 2012 when Insight Equity Holdings LLC purchased Flanders Corp. for around $192 million. Former President and Chief Financial Officer John Oakley also described that transition as “business as usual” in an interview at the time.

“It’s an entirely different market segment for business for them,” Davis said of Daikin. “It just makes them the leader for air filtration service in the United States and the world.”