Markaryd, Sweden-based NIBE Industrier AB announced on Monday that it has signed an agreement to acquire 100 per cent of shares in Tiel, the Netherlands-based Climate for Life (CFL).
Majority stakeholder Parcom and its co-investor Smile Invest have agreed to this acquisition.
The enterprise value of €640M for 100 per cent of the share capital corresponds to an EV/EBITDA multiple of 13.6x, based on a forecasted EBITDA for 2023 of €47M, and excluding potential synergies.
NIBE is expected to finance this transaction from readily available funds.
Upon transaction approval, the company will be part of the NIBE Climate Solutions business area. Consolidation with NIBE is expected to take place on September 1, 2023.
Post-acquisition
As part of the acquisition, CEO Bas Korte and CFO David Eddes will remain in their positions to ensure a smooth transition period towards the end of 2023. They will thereafter continue to support CFL.
From January 1, 2024, Kerst Algera will take over as CEO and Ingmar den Blanken will become CFO.
Gerteric Lindquist, CEO of NIBE Industrier, says, “CFL and NIBE are both household names in climate solutions with a strong heritage, similar business values and culture, as well as a long-term commitment to the industry. The two businesses have an overarching geographical footprint and will together be one of the largest climate solutions providers in Europe. This allows the combined companies to better serve a larger customer base with innovative, sustainable, and affordable quality products.”
“Furthermore, the two businesses are complementary in terms of product offerings. NIBE is convinced that CFL’s high-quality assortment has very strong potential in certain segments where NIBE is currently underrepresented,” adds Lindquist.
Climate for Life
CFL is a developer, producer, and seller of energy-efficient solutions in heating and cooling, hot water, ventilation, and control technology (HVAC).
Climate for Life has a strong position in the Dutch residential and commercial market and is driven by energy-neutral living.
CFL operates through its subsidiaries Itho Daalderop, Klimaatgarant, and Exploitatie and is active in the Netherlands and Belgium.
In 2022, the business had annual sales of €221M with an EBITDA of €40M, corresponding to an EBITDA margin of 18.1 per cent.
Bas Korte, CEO of CFL. says, “Since 2000, we have focused on making homes sustainable with innovative climate solutions. We have grown into a strong supplier of heat pumps, ventilation, and hot water. The growth we have achieved in recent years is partly due to the substantial investment plan that we have successfully implemented with our partner Parcom.”
“Today we are ready for another long-term growth spurt. We were convinced this was the right time to explore joining forces with a strategic partner. In NIBE we have found the partner that fits us perfectly in terms of a sustainable DNA, corporate culture, and long-term strategy to help realize our ambitions both in the Benelux and beyond,” adds Korte.
Read the orginal article: https://siliconcanals.com/news/nibe-industrier-acquires-climate-for-life/
