Fallbrook sells APU business
Fallbrook Technologies Inc. announces the sale of its Dynasys Auxiliary Power Unit (APU) business to Tridako LTD.
Tridako, known as Tridako Energy Systems, is located in Alliance, Neb., and is the maker of the PowerCube APU. It is the Power and Energy Division of Perrin Manufacturing, Inc. Also located in Alliance, Perrin is a 35-year-old company that manufactures HVAC units for off-road commercial vehicles and APUs for niche markets. The terms of the transaction, which will close on April 1, 2014, are confidential.
According to William G. Klehm III, Fallbrook’s chairman and CEO, when Fallbrook acquired the Dynasys business a little over three years ago, there was an expectation that incorporating NuVinci CVP technology would improve the value proposition of the Dynasys APU sufficiently to offset the additional per-unit cost and showcase the NuVinci technology into a powered application.
“The payback period for a Dynasys APU quickly became shorter when diesel fuel prices increased, and it became apparent that the Dynasys value proposition was already very attractive,” says Klehm. “Additionally, after the Dynasys acquisition, Dana Holding Company and Allison Transmission, in licensing the rights to use NuVinci technology, validated the fact that our technology can improve sophisticated power drive products.”
Summarizing the decision to sell, Klehm adds, “Every business must focus on what it can be great at. The progress of our existing NuVinci licensing and future opportunities indicated that our resources are best focused on applications of our NuVinci technology. Therefore, it did not make sense to retain Dynasys as part of our company, but to sell it to a company such as Tridako, which excels at building and selling APUs.”
“The Dynasys APU business is an excellent fit with our group of companies, complementing our
existing APU products and providing both an excellent dealer network and sales expertise,” says
Dan Koch, the president and CEO at Perrin Manufacturing. “We are particularly pleased to have Rick Shaff, who served as the president of Fallbrook’s Dynasys business unit, joining our team.
“Rick brings more than 20 years of executive experience and has spent the last eight years in the APU industry. This is an excellent strategic fit for Perrin and we are looking forward to pursuing aggressive growth.”