The Concepcion group is breaking into the elevator and escalator business with the acquisition of a majority stake in Otis E&M Co. Philippines, coming in as joint venture partner of American multinational conglomerate United Technologies Corp. (UTC).
In a disclosure to the Philippine Stock Exchange on Thursday, newly listed Concepcion Industrial Corp. (CIC) said its board had approved the formation of a joint venture with UTC through the acquisition of a majority stake in Otis E&M.
Otis is one of the leading providers of elevators and escalators in the country. It has been doing business locally since 1935, making it the country’s first elevator company.
The acquisition will be made through Concepcion Carrier Air Conditioning, in turn a joint venture between CIC and Carrier Air Conditioning Philippines.
“The acquisition of Otis will strengthen CIC’s building and industrial solutions segment, creating added synergies and a new strategic growth platform aligned with a global trend and building solution trends,” the disclosure said.
CIC is the country’s leading airconditioning and refrigeration appliance manufacturer. It is also the local distributor of the products of Chinese manufacturing powerhouse GD Midea Holdings, the largest appliance company in the world.
The company debuted on the local stock exchange late last year after 50 years of operating as a family-owned corporation. CIC, which has been growing at a compounded annual growth rate of 13 percent in the last three years, is upbeat on its growth trajectory in the years ahead.
UTC, on the other hand, is a diversified company that provides a broad range of high-technology products and services to the global aerospace and building systems industries.
Otis elevators and escalators are part of its commercial businesses, which also include heating, ventilation, air conditioning, fire and security systems, building automation and controls.