2018-03-27 Financial news
Alfa Laval has signed an agreement to sell parts of the Greenhouse business to NIBE
Alfa Laval – a world leader in heat transfer, centrifugal separation and fluid handling – has signed an agreement to sell its heat exchanger systems business, currently part of the Greenhouse division, to the NIBE Group. The closing of the agreement is expected during the second quarter of 2018.
The heat exchanger systems business has been a part of Greenhouse since 2016. It was moved there, along with a few other selected product groups, to give it the best possible conditions to improve its performance. The strategy has proven to be successful and the heat exchanger systems business reported revenues of SEK 300 million in 2017.
“This business has indeed improved throughout last year,” says Tom Erixon, President and CEO of the Alfa Laval Group. ”However we concluded that it would have even better opportunities to develop under the ownership of the NIBE Group. NIBE Group is a solid player with a dedicated focus on the HVAC industry – and the heat exchanger systems will be a valuable complement to their current portfolio.”
”With the acquisition, NIBE Climate Solutions gets a high-quality product complement with good business opportunities within the district heating market, while providing positive synergies with NIBE's heat pumps, says Gerteric Lindquist, CEO of NIBE Industrier. "It is also valuable and positive that the management and employees in the heating and cooling business will continue their employment in the NIBE Group."
The agreement to divest the heat exchanger systems business to the NIBE Group will impact in total about 60 employees based in Sweden, France, Russia, Czech Rep, Finland, UK and Slovakia. These employees will continue their employment in the NIBE Group as per closing date of the transaction.
Alfa Laval will continue to develop and produce heat exchangers for the HVAC market, including the district heating application, where Alfa Laval’s technology and products are considered to be a reference solution. NIBE Group will remain a customer to Alfa Laval also after the divestment.
Did you know that… rising concerns toward greenhouse gas emissions coupled with strong demand for cost-effective systems will drive the district heating market size over the years to come?
About Alfa Laval
Alfa Laval is a leading global provider of specialized products and engineering solutions based on its key technologies of heat transfer, separation and fluid handling.
The company’s equipment, systems and services are dedicated to assisting customers in optimizing the performance of their processes. The solutions help them to heat, cool, separate and transport products in industries that produce food and beverages, chemicals and petrochemicals, pharmaceuticals, starch, sugar and ethanol.
Alfa Laval’s products are also used in power plants, aboard ships, oil and gas exploration, in the mechanical engineering industry, in the mining industry and for wastewater treatment, as well as for comfort climate and refrigeration applications.
Alfa Laval’s worldwide organization works closely with customers in nearly 100 countries to help them stay ahead in the global arena. Alfa Laval is listed on Nasdaq OMX, and, in 2017, posted annual sales of about SEK 35.3 billion (approx. 3.6 billion Euros). The company has about 16 400 employees.
About NIBE Industrier
NIBE – a global Group with operations and sales on five continents.
NIBE is a global group that helps make the world more sustainable through its solutions for indoor climate and comfort and its components and solutions for measurement, control and electrical heating. NIBE has more than 60 years of experience manufacturing products intended for both household and commercial use. From its roots in southern Sweden, NIBE has grown to having operations and sales on five continents.
NIBE has developed a culture of entrepreneurship and a passion for doing business. Investments in sustainable product development and acquisitions have helped the NIBE Group expand significantly – sales totalled SEK 19 billion in 2017. Operations are conducted in three business areas: NIBE Climate Solutions, NIBE Element and NIBE Stoves – with more than 15,000 employees in Europe, North America, Asia and Australia.
NIBE has been listed under the name NIBE Industrier on Nasdaq Stockholm, Large Cap list, since 1997, with a secondary listing on the SIX Swiss Exchange since 2011.
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