Arbonia divests the Climate Division for EUR 760 million to Midea

Arbonia AG / Key word(s): Disposal Arbonia divests the Climate Division for EUR 760 million to Midea 18-Apr-2024 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. 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.