Nikkiso has closed its acquisition of Cryogenic Industries of Temecula, California, USA, and Cryogenic Industries of Basel, Switzerland. The deal includes all of Cryogenic Industries’ operations.
Cryogenic Industries consists of original technology brands ACD, Cosmodyne and Cryoquip. The group has over 40 years’ experience in the engineering and production of cryogenic equipment, and is a major supplier to the industrial gases and natural gas market.
Nikkiso is a specialist in advanced technologies for the aerospace, clean energy, industrial, and medical markets. According to a statement, Cryogenic Industries shares similar objectives and aligns with Nikkiso’s global strategy.
“The acquisition will strengthen our global presence through Cryogenic Industries’ strong position in North America. It will provide an excellent complementary fit for Nikkiso group’s global base for production, which will allow us to gain efficiency improvements and balance currency effects,” said Toshihiko Kai, president and CEO of Nikkiso.
“As a joint group of companies, the setup will allow us to have customer focused centers around the globe that will be in position to support the entire range of Nikkiso group products.”
A key aim of Nikkiso’s strategic growth plan is to benefit from each group’s strong market positions in China, Europe, India, Japan and the USA.
“We look forward to working with Nikkiso to continue enhancing and expanding our global cryogenic technology offerings and realise opportunities in an aligned global group,” said Ross Brown, Chairman and Chief Executive Officer of Cryogenic Industries.
Each of the branded companies will continue to act as its own distinct entity with separate focus and targets.
The acquisition comes as the key markets connected to cryogenics are showing strong outlooks.
In the coming five years the industrial gas market is expected to grow at a rate of 6.2%, according to Process Worldwide. Global LNG expenditures are forecast to total $284 billion between 2017 and 2020, representing a 50% growth on the previous five year period, forecasts Douglas Westwood, while the market for hydrogen use in clean energy is anticipated to show similarly impressive performance.