Arbonia divests the Climate Division for EUR 760 million to Midea
Arbonia AG / Key word(s): Disposal Arbon, Switzerland, 18 April 2024 – After the conclusion of a competitive sales process with several bidders, Arbonia has decided to divest the Climate Division to Midea Electrics Netherlands B.V., a company of Midea Group for an enterprise value of EUR 760 million. Subject to the approval of relevant regulators, up to CHF 400 million of the sales proceeds are to be returned to the shareholders after completion of the transaction. In addition, net sale proceeds will be used to strengthen the doors business and to reduce net debt. The doors business will strategically be further developed both organically and through acquisitions, with the objective of making Arbonia a European market leader for doors made of wood and glass. Arbonia has signed an agreement to divest the Climate Division to Midea Electronics Netherlands B.V., a subsidiary of the globally operating Midea Group (Midea) from China, which is listed on the stock exchange. The enterprise value of EUR 760 million corresponds to a normalised EBITDA multiple of around 12x based on the expected EBITDA for the financial year 2024, in line with precedent transactions for the industry. It should be noted in addition to the purchase price that, inter alia, the non-operating real estate of the Climate Division will not be part of the transaction and remain with Arbonia. The Climate Division develops and produces products and systems for sustainable heat and cold generation, heat and cold distribution, as well as for ventilation and air filtration. The division includes the system brands KERMI, PROLUX, SABIANA and VASCO as well as the focused brands arbonia, Britec, Brugman, Cicsa, PZP, Solius, Superia, Tecna, and Termovent. Midea plans to continue to invest in the Climate Division’s existing sites, employees, and R&D capabilities. These brands are therefore to remain in the future and be further expanded. The Clivet Group, which is also part of the Midea Group and based in the northern Italian region of Veneto, is a leading European company in the planning, manufacturing and sale of systems for climate, heating as well as air renewal and purification. The company offers a wide range of solutions for the residential, service, and industrial sectors. The combination of Clivet Group with the Climate Division will create a European leader for climate solutions. The combined group will develop sustainable and innovative solutions for home comfort and energy efficiency and thus drive forward the sustainable energy transition in the building sector. The combined group will benefit from a complementary product portfolio, an existing dealer and installer network, supply chain efficiencies as well as a strategic alliance with Midea Group. The transaction is subject to the required approvals by relevant regulators. The closing of the transaction is expected in the second half of 2024. Use of funds As announced, the Board of Directors intends to propose an ordinary dividend payment of CHF 0.30 per share for the 2023 financial year at the Extraordinary General Meeting; as in previous years, half of the amount would be contributed from capital contribution reserves and the other half from retained earnings. Following the ordinary dividend and nominal value repayment, the Board of Directors intends to launch a share buyback programme to reduce the share capital by up to 6,900,000 shares (~10 % of the share capital). Thanks to the strong balance sheet with a very high equity ratio and low net debt after allocation of EUR 200 million to the Doors Division for both organic and acquisition-related growth initiatives, the strategic flexibility and development of the Doors Division is ensured. Future orientation of Arbonia Advisors Contact News Source: Arbonia AG End of Inside Information |
Language: | English |
Company: | Arbonia AG |
Amriswilerstrasse 50 | |
9320 Arbon | |
Switzerland | |
Phone: | +41 71 447 41 41 |
E-mail: | holding@arbonia.com |
Internet: | www.arbonia.com |
ISIN: | CH0110240600 |
Listed: | SIX Swiss Exchange |
EQS News ID: | 1883183 |
End of Announcement | EQS News Service |
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1883183 18-Apr-2024 CET/CEST