NIBE Industrier AB has signed an agreement to acquire the business operations of DMS Wasser-Wärmetechnik GmbH, located in the vicinity of Hamburg, Germany.
As a result of the acquisition NIBE will also take over the production and sales units Dinox-D and Dinox-H with facilities in Wismar in the east of Germany and Tatabanya in Hungary.
DMS will form part of the NIBE Heating business area.
DMS was established in 1974. The company develops, manufactures and markets water-heating systems for large premises as well as district-heating systems. The company is one of the leaders in its field in Germany and has achieved substantial sales in foreign markets that include Austria and Italy.
The DMS Group employs some 80 workers at its three units in Germany and Hungary. Annual sales total approximately EUR 13 million with pre-tax profits of EUR 650,000.
The acquisition is contingent on the customary due diligence procedures. The takeover itself is scheduled to take place towards the end of July 2006.
“The strategy behind the acquisition is to give NIBE a platform for the sale of district-heating equipment in Germany. In addition, DMS’s production of large stainless steel water tanks is also an appropriate complement to the current NIBE Heating product range,” says Gerteric Lindquist, President and CEO for NIBE Industrier.
No changes will be made to the corporate management of DMS, nor to trademarks, production units or sales organisations. The company will continue to be led by the current management team.
“We believe that the greatest synergies will be on the marketing side, as the current product range will now be supported by a much larger marketing organisation throughout the whole of Europe,” says Gerteric Lindquist.
For further information call +46 (0)433 - 73 000 or +46 (0)70 – 530 20 71.