Arbonia divests the Climate Division for EUR 760 million to Midea - Seite 2

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
The Board of Directors intends to distribute a part of the proceeds to the shareholders of Arbonia AG. Following the reduction of net debt, it will propose a distribution of around CHF 280 million in the form of a nominal value repayment of CHF 4.00 per share as part of an Extraordinary General Meeting. The nominal value would decrease from previously CHF 4.20 to CHF 0.20 per share as a result of the repayment. This nominal value repayment would presumably be tax-free for the majority of Arbonia shareholders. 

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.