Arbonia considers purchase offers for the Climate Division and publishes annual results for 2023

Arbonia AG / Key word(s): Annual Results Arbonia considers purchase offers for the Climate Division and publishes annual results for 2023 27-Feb-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, 27 February 2024 – The Board of Directors has received several unsolicited expressions of interest in purchasing the Climate (formerly HVAC) Division, prompted by comparable transactions in the market. After careful consideration and with a view to sustainably increasing the value for shareholders, the Board decided to carry out a structured sales process with several strategic prospective buyers. Upon conclusion of a possible transaction, the Board of Directors intends to return a significant share of the proceeds to the shareholders, in addition to reducing debt. At the same time, the remaining Doors Division is to be strategically developed as well as further strengthened through targeted acquisitions.

The Arbonia Board of Directors has received several unsolicited indications of interest in purchasing the Climate (formerly HVAC) Division and has subsequently decided to carefully review them with the involvement of investment banks. The process and the negotiations with several strategic potential buyers are currently at an advanced stage.

The valuation of the Climate Division used for the negotiations is based on market-standard EBITDA transaction multiple for a company operating in the heating, ventilation and air-conditioning sector.

The Board of Directors intends to provide the shareholders with a significant share of the sales proceeds of the Climate Division upon completion (closing) of a possible transaction. When the possible transaction is completed and the proceeds from the sale are received, expected for the second half of 2024, the Board of Directors would invite shareholders to an Extraordinary General Meeting, which would vote on the instruments for returning funds to the shareholders. Due to the ongoing negotiations, the Board of Directors has also decided to request the distribution of an ordinary dividend for the financial year 2023 at such an Extraordinary General Meeting.