- Australasia’s leading stainless steel fabricator and major supplier to the dairy and wine industries, NDA Group, has purchased one of the largest specialist heat exchanger manufacturers in the United States.

In its second major international play, NDA Chief Executive Officer, Rob Alloway announced the acquisition of Southern Heat Exchanger Corporation (SHECO) from Harbour Group (St. Louis, Missouri) today, for an undisclosed sum.

Southern Heat Exchanger has revenues of US$50 million and a significant North American market share, Mr Alloway said today.

“Southern Heat Exchanger fits nicely with our plans for global expansion, which commenced in 2006 with the purchase of a major stainless steel fabrication business in China, from the US based Carlisle Process Systems. The purchase diversifies NDA into the important chemical segment, providing a wealth of opportunities in a number of markets. Without doubt NDA has a very strong platform for future growth”, Mr Alloway said.

Southern Heat Exchanger was founded in Tuscaloosa, Alabama in 1961, and now employs approximately 160 staff manufacturing shell and tube heat exchangers. The company has developed a successful subsidiary service operation (Southern Heat Exchanger Services) in Houston, Texas.

Southern Heat Exchanger President, Bill LaGanke said “We are very pleased to be joining the NDA Group. The international capability of NDA will most certainly hasten the expansion of our customer base for both new and service repair units”.

NDA, which will employ more than 600 people across eight manufacturing sites in New Zealand, Australia, China and now the United States, was recently the subject of a Private Equity investment by RMB Capital Partners, a subsidiary of First Rand Group one of the southern hemisphere’s largest financial institutions.

“This acquisition will almost double the size of NDA and move us strongly into the international manufacturing scene”, Mr Alloway said

Mr Alloway said the benefits of this acquisition were many but in particular it would allow Southern Heat Exchanger to tap into the rapidly expanding Asian heat exchanger market, using NDA’s strong and established presence in China. It would also enable NDA to expand its North American sales channels in the food and beverage and industrial segments.

Mr Alloway said that Southern Heat Exchanger has an “enviable” list of blue chip clients, many of whom have dealt with the company consistently for more than 30 years.

“They have a strong and experienced management team and a great track record of revenue and earnings growth. They have invested heavily in automation to become one of the most efficient heat exchanger manufacturers in the world today”.

About NDA

NDA is a private New Zealand company established in 1894. Today it employs around 600 people across eight manufacturing centres in New Zealand, Australia, China and the United States, with annual revenues in excess of NZ$180 million.

The company fabricates high quality stainless steel equipment, specialising in the dairy, wine, chemical and pharmaceutical sectors. Through its division, Dairy Technology Services (DTS), the company provides products and on farm support services to the dairy sector.

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