2023-04-26 05:34:17
This put the price at 12 billion euros, of which the majority should go in cash and 20 percent as a share package to the remaining Viessmann Group. According to its own statements, this will thus be one of the largest shareholders in the US group. The deal is expected to be completed by the end of the year.
The purchase price corresponds to 13 times the operating profit (Ebitda) expected for 2023, Carrier announced on Wednesday night. Viessmann announced that both sides had agreed on long-term guarantees. Operational redundancies are excluded for three years, important locations are secured for five years and Allendorf an der Eder is set as the headquarters for ten years. 106 million euros are to be distributed to the employees of the division as a special bonus “for 106 years of success”. With the announcement late on Tuesday evening, what several media had already reported regarding the day from informed circles became a certainty.
“Game Changing Opportunity”
Carrier boss David Gittin described the acquisition as a “game-changing opportunity”. The Viessmann climate division with 11,000 team members is crucial for the European energy transition. The US company also emphasized the market access of over 75,000 installers in 25 countries who might bring Viessmann products into households. The European heat pump market will triple to around 15 billion US dollars by 2027. At the same time, Carrier announced that it would exit other activities such as fire safety and refrigeration equipment.
The climate solutions division recently accounted for a large part of the turnover of the family company from northern Hesse, which had risen to a record value of around four billion euros for 2022. The company, founded in 1917 from a metalworking shop, is one of the best-known German heating contractors and has so far been one of the winners of the climate change, especially in the building sector. It employs around 14,500 people worldwide.
Heat pumps were the drivers for the strong growth in recent years
The drivers for the strong growth in recent years were heat pumps, which, according to political specifications, should quickly replace gas and oil heating in buildings. In May 2022, Viessmann announced investments of around one billion euros in this area. Among other things, a factory is currently being built in Poland.
The company Carrier from the US state of Florida is considered the inventor of modern air conditioning and was founded in 1902. The group employs 52,000 people and earned $20.4 billion last year. North and South America accounted for 60 percent of sales. The company has three production sites in Europe, in France and Spain. In 2004, the Americans took over the refrigeration technology of what was then Linde AG, but later stopped production in Germany.
With the partial sale for shares and cash that has now been decided, the core business of the regionally positioned Viessmann company will be absorbed by the Carrier Group and will gain significantly greater financial strength. Faster growth would be possible, it was said in business circles. Ultimately, in global competition, at some point only size and quantity count. “The merger creates a fast-growing innovation leader in a highly competitive market from a position of strength,” explained company boss Max Viessmann, who is also to receive a seat on the carrier board of directors.
In mass production, however, experts see an advantage for the Asian suppliers of air conditioning systems, which are largely similar to heat pumps and have been built in extremely large numbers for decades. Well-known providers are Daikin, Mitsubishi (both Japan), Midea (China) and Samsung (Korea). In Germany, they still lack market access via installers.
1682492605
#Billion #deal #heat #pump #manufacturers #News.at
