Mitsubishi Electric Subsidiaries Acquire French A/C Maker AIRCALO
TOKYO, April 3, 2024 - Mitsubishi Electric Corporation announced today that its wholly owned subsidiaries Mitsubishi Electric Hydronics & IT Cooling Systems S.p.A. and Mitsubishi Electric Europe B.V. wholly acquired AIRCALO, an air-conditioning company in France, on April 2. Going forward, Mitsubishi Electric expects to leverage AIRCALO's broad product line and strong customization capabilities to expand and upgrade its hydronic HVAC systems business in the diversifying European market, including by meeting strong demand for made-to-order products and environmental awareness.
Robust product lines and customization capabilities are important in the hydronic HVAC systems business, where demand is high for made-to-order products at individual installation sites. For fan coil units (FCUs) AIRCALO not only performs internal customization of the main unit but also packages peripheral components and control equipment that are typically arranged and installed by on-site contractors, which also helps to reduce labor and eliminate errors during installation.
Having operated in France for many years, AIRCALO commands a large share of the local market for FCUs and air handling units (AHUs) leveraging its broad range of products and strong customization capabilities to meet the specific needs of each installation site.
The acquisition will enable Mitsubishi Electric to strengthen its contribution to carbon neutrality by providing diverse environmentally friendly products to the European market. Mitsubishi Electric's medium-term business plan through the fiscal year ending March 2026 positions air-conditioning and refrigeration systems as priority growth businesses, based on which the company has been expanding such businesses globally.
In the European market, a key region for Mitsubishi Electric's growth strategy, countries are actively implementing measures to become carbon neutral, including switching to refrigerant products with low global-warming potential (GWP) and expanding the introduction of hydronic HVAC systems that use reduced amounts of refrigerant in line with stricter regulations expected in the future.
Source: Mitsubishi Electric