US compressor manufacturer Tecumseh announced recently that "an affiliate" of Mueller Industries & Atlas Holdings is to buy the company for $123 million (~£79 million).
Tecumseh has been struggling with debt, losses and declining sales. However, in recent months CEO, Harold Karp, implemented cost saving controls which had begun to improve the company's fortunes. Tecumseh makes compressors for commercial and domestic markets, as well as making conditioning systems.
Sales into commercial markets, which make up 67% of their business, declined by nearly 11% in the second quarter of 2015. Sales into the domestic applications market fell by nearly 18% in the same period.
The deal with Mueller Industries & Atlas Holdings will help Tecumseh by making use of their owners' marketing and operational strengths, as well as with capital. Mueller Industries makes copper tubes, fittings and other related products. Atlas Holdings works across a number of industries, including aluminum processing, automotive, building materials, construction and energy.
We look forward to working with Mueller Industries and Atlas Holdings to help us achieve continued growth as we provide our customers with innovative, best-in-class products and outstanding service and support,"stated Harold Karp.
