Ann Arbor-based Tecumseh Products Co., a longtime manufacturer of compressors, today announced it will be acquired by an affiliate of Mueller Industries and Atlas Holdings for $123 million.
“We look forward to working with Mueller Industries and Atlas Holdings to help us achieve continued growth as we provide our customers with innovative, best-in-class products and outstanding service and support,” says Harold Karp, president and CEO of Tecumseh.
Karp says Memphis-based Mueller Industries, a manufacturer and distributor of copper and aluminum products, and Greenwich, Conn.-based Atlas Holdings, a group of manufacturing, distribution, service, and trading businesses, will contribute market and operational expertise along with capital.
The offer price of $5 per share in cash reflects a 155 percent premium based on Tecumseh’s closing price of $1.96 per share on Aug. 4.
Tecumseh will remain a standalone business and its headquarters will remain in Ann Arbor. Tecumseh will become a privately-held company so it can focus on growing the business, launching new products, and enhancing customer service. The company will continue to operate its global technology centers and manufacturing facilities in North America, South America, Europe, and Asia.
Tecumseh’s senior management is expected to remain in place after the transaction closes.
Tecumseh is a manufacturer of sealed compressors for residential and specialty air conditioning, household refrigerators, and commercial refrigeration applications.
The transaction is expected to be completed in the third quarter.â€‹