BJERRINGBRO, Denmark, Jan. 18, 2005 -- As of Jan. 1, Grundfos takes over the Italian submersible motor manufacturer Tesla s.r.l. The agreement has been reached to further develop Grundfos' strategic presence in the submersible motor market, offering customers the possibility to diversify their demand.
Tesla s.r.l will continue to be managed by the present owners, Franco Nassuato and Paolo Petrucci, under a clear separation strategy thus enabling customers worldwide to benefit from a wider range of suppliers. It also means that it will continue to operate under its present name.
Grundfos Group President and CEO Jens Jorgen Madsen says, "Grundfos, as one of the largest pump manufacturers in the world, has produced submersible motors for many years. With the acquisition of Tesla we expand our global market share within submersible motors considerably and we achieve a competitive edge as supplier of submersible motors to the pump industry. Today, the American company Franklin Electric has a very dominant position in the market. We are very satisfied with this acquisition, and it will play an important role in our strategy in the coming years."
Tesla was established in 1990 by Nassuato and Petrucci, who both have a lifetime's worth of experience within the submersible motors business and have managed the company successfully. It has by now reached:
-- A production of 100,000 motors (4" and 6"),
-- An estimated 2004 sales of over 12 million euros [US$15,614,096], and
-- A total of 70 employees.
Production will continue with the present employees in the existing factory in Vicenza, Nothern Italy. As part of the Grundfos Group, Tesla s.r.l is expected to benefit fully from:
-- The potential synergies in processes,
-- The experience with 'best practice' work with quality, and
-- The financial strength of the Grundfos Group.
About Grundfos
Grundfos (www.grundfos.com) has an annual turnover of more than 1.5 billion euros [US$1.95 billion] and 12,500 employees. The group has production companies in 12 countries and sales companies in 40 countries worldwide. It supplies pumps for a wide range of purposes, e.g. in the building and manufacturing industries as well as for dosage, water supply and wastewater, and furthermore it manufactures motors and electronics. The Group already has a series of activities and a total turnover in Italy of more than 125 million euros [US$162.65 million].
ALSO SEE: Grundfos purchases leading German dosing pump maker, Alldos
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