The Board of Aeris Environmental Limited (ASX: AEI) today formally announces a global strategic alliance with the largest Heating and Air Conditioning (HVAC) Company in the world, Daikin Industries.This incorporates a partnership with Goodman Global Group, Inc, a leading manufacturer of air conditioning equipment in North America.
An opening order commitment of circa $1,000,000 has been received as part of an initial roll-out intoGoodman’s North American company owned and third-party distribution stores. In parallel, Daikin Goodman has undertaken to supply the Aeris products into its network of over 1,000 dealersin over 60 countries globally.
Mr Tom Dendy, Goodman’s Vice President of International confirmed: “Our entire team has been very impressed with the advanced technologies and know-how the Aeris brings to the market. In conjunction with the USA launch, we will be offering Aeris products to our global customer base in over 60 different countries. Aeris Environmental’s unique coatings offer significant lifecycle cost improvements in a wide variety of HVAC applications that should help our dealers differentiate themselves in the market place."
North America is the worlds’ largest single market for air conditioning consumables.
Rick Mabry, Managing Director of Global Parts and Procurement for Goodman Distribution, North America, stated “We are pleased to align with Aeris products and technology after completion of our relationship and product evaluation process. We look forward to offering the technology and innovative products to our network of over 80,000 contractors. The U.S. market for HVAC maintenance and hygiene consumables is in excess of $USD250 million per annum.”
Today's company-making announcement makes the current share price of 18c and market cap of just $28.43m AUD look incredibly cheap. Prior to this announcement I have seen a broker's fair value of the stock as being 33c and today's announcement should add very significantly to that figure too, now that the company is poised to enter the world's largest market for air conditioning consumables.
The Presentation on page 12, also released today, indicates the global footprint the company already had even prior to today's company-making announcement. They have 104 clients and are active in 17 countries including Australia, China (+HK, and Macau), India, Japan, Malaysia, Malta, NZ, The Philippines, PNG, South Korea, Singapore, Thailand, The UAE and Vietnam, and now you can add the US to the list.
There is plenty of growth going forward for AEI. Today's global strategic alliance by itself has the potential to multi-bag the company's market cap and share price to well over $1 and even that is being conservative given we are talking about 210 stores and 80,000 contractors in the US alone in a market worth $250m USD annually, and the global network of over 1,000 dealers in over 60 countries around the world in addition to it.
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