Beijer Ref has entered into an agreement to acquire Heatcraft Australia.
Beijer Ref’s media release states that the acquisition means that the Sweden-based company will double its sales in the Asia-Pacific Region. It also means that the company will become a significantly stronger player as the total annual sales in the region will amount to over AUD$3.45 billion yearly after completion. This represents 19 percent of Beijer Ref’s global sales, compared with 10 percent today.
Beijer Ref acquired Heatcraft from Lennox International for approximately SEK 450 million (AUD$76.8 million as of today’s exchange rates).
Heatcraft, owned by Lennox International Inc, is one of the largest refrigeration wholesalers in Australia and New Zealand. The company also has operations in China and Singapore and supplies refrigeration equipment, refrigerants, and spare parts to customers all over Asia. Sales are made through a large distribution network with over 65 branches.
In addition to wholesale operations, Heatcraft has a manufacturing unit in Wuxi, China, where heat exchangers and cooling units are produced. The deal also includes just over five percent of the shares in the public company, Kulthorn Kirby, a Thai compressor manufacturer.
Beijer Ref CEO, Per Bertland, emphasised the benefits of the acquisition for both Australia and Europe.
“This acquisition is line with our strategy to also grow outside of Europe. In addition, we strengthen the OEM segment through the acquisition of the Wuxi production plant in China, which in the long term could provide further opportunities to continue expanding our European green technology to the rest of the world to a greater extent.
“We expect that, Australia in particular, will comply with the European directives to phase out environmentally hazardous refrigerants. With the acquisition of Heatcraft, we are even better positioned in the market for green technology which we believe will grow significantly.”
The media release also stated that Beijer Ref and Heatcraft reached a binding agreement and completion of the acquisition is scheduled for April 2018. The business will initially be continued in its existing form and under the brand Heatcraft. The acquisition is expected to have positive effects on both sales and earnings in the long term.
Image via Pixabay.