8/16/2011 6:30 AM
– acquires the Element Division of Emerson Electric Co. in the USA, Mexico and China
NIBE Industrier AB has reached agreement on the acquisition of the Element Division of Emerson Electric Co., which has operations in the USA, Mexico and China. The acquired Division will form part of the NIBE Element business area.
The Element Division, which was established in 1917, has sales of approximately 75 million US dollars a year (approx. SEK 485 million) and an operating margin of more than 10%.
The product program consists primarily of electric heating elements and heating systems that are used in, for example, white goods and air-conditioning equipment. The acquisition adds new technology to the NIBE Element product portfolio in climate control.
The Division employs just over 1,100 people in Murfreesboro, Tennessee, USA , Nuevo Laredo, Mexico and Shenzhen, China.
“We are proceeding with our plans for systematic expansion – now outside Europe. In strategic terms this is an ideal acquisition for us. Not only does it give us a firm foothold in the United States, where we have previously not been strong, but it also reinforces our presence on both the Chinese and Mexican markets,” says Gerteric Lindquist, CEO of the NIBE Group.
“It also means that NIBE Element further strengthens its position as one of the world’s foremost names in the heating element industry.”
The acquisition is conditioned by customary regulatory filing and waiting periods.
It is planned that the Division will be consolidated into the NIBE Group with effect from October 1, 2011.
Mr Benny Torstensson Information Manager: +46-(0)433-73 070
Mrs Christel Fritiofsson IR-Manager: +46-(0)433-73 078