Arbonia Sells Climate Division to Midea for EUR 760 Million

Arbonia AG has officially sold its Climate Division to Midea Electrics Netherlands B.V., part of the China-based Midea Group, for EUR 760 million. This transaction, involving a competitive bidding process, is expected to close in the second half of 2024, following regulatory approvals.

Proceeds from the sale will significantly impact Arbonia's strategy, with plans to distribute up to CHF 400 million to shareholders and allocate funds towards reducing net debt and strengthening its Doors Division. This focus aims to expand Arbonia’s presence in the European market for wooden and glass doors through organic growth and strategic acquisitions.

The divested Climate Division, known for its sustainable heating and cooling solutions, operates under several notable brands. Midea intends to invest in the division’s sites, staff, and research and development, ensuring the continuation and expansion of these brands. Additionally, the integration with Midea's Clivet Group is set to position the combined entity as a leader in European climate solutions.

Arbonia’s strategic refocus on its Doors Division is expected to propel growth, with a target of achieving significant revenue and an EBITDA margin of around 15%. The sale includes extra financial activities such as a shareholder dividend proposal and a share buyback program, emphasizing Arbonia's financially robust position post-transaction.