Elgi Compressors USA, Inc, a subsidiary of Coimbatore-headquartered air compressor manufacturing major Elgi Equipments, has acquired Michigan Air Solutions, an independent distributor of air compressors in Michigan.
The acquisition will help Elgi expand its presence in the US and strengthen its position in the global compressed air industry, said Jairam Varadaraj, Managing Director, Elgi Equipments.
Stating that the acquisitionwas just a “legal shift” in ownership, Varadaraj said Elgi has, over the last one year, been in contact with Michigan Air Solutions, their products and people, before finalising the deal. The cost of acquisition is estimated at $6 million.
Through the acquisition, Elgi expects to gain access to a significant customer base and establish a foundation for further expansion in North America. Varadaraj said Elgi has identified top 20 geographies in the US for organic and inorganic expansion.
“We have a network of 100 distributors in the US, and are constantly striving to expand and strengthen our presence,” he said.