Markaryd, Sweden and Fort Wayne, IN, USA — WaterFurnace announced today it has entered into an arrangement agreement with NIBE, one of the leading heat pump manufacturers in Europe, who will acquire 100 percent of the outstanding shares of WaterFurnace. WaterFurnace will continue to operate as a separate entity under the leadership of CEO Tom Huntington and his management team, forming part of NIBE’s business area, “NIBE Energy Systems.”
- Swedish based NIBE, one of the leading heat pump manufacturers in Europe, is teaming up with US-based WaterFurnace, one of the market leaders in North American geothermal heat pump heating and cooling solutions market.
- WaterFurnace will continue to operate as a separate entity under the leadership of its CEO Tom Huntington and his management team, forming part of NIBE’s business area NIBE Energy Systems. NIBE intends to develop the business as a growth platform in North America.
WaterFurnace Renewable Energy, Inc. and NIBE Industrier AB of Sweden (“NIBE”) announced that they have entered into an arrangement agreement (the “Arrangement Agreement”) pursuant to which NIBE will acquire 100% of the outstanding shares of WaterFurnace (the “WaterFurnace Shares”) by way of a plan of arrangement under the Canada Business Corporations Act.
“This transaction is NIBE’s largest to date in North America and further elevates our position as one of the global market leaders in sustainable energy solutions. Following our successful expansion of our Elements Division in the United States, the teaming up with WaterFurnace represents a strategic match and bridgehead into North America also for our largest business area Energy Systems. We are pleased to see that both groups share the same entrepreneurial tradition and technological vision, being one of the first companies to market geothermal heat pump solutions on respective sides of the Atlantic”, says Gerteric Lindquist, CEO of NIBE.
“I believe this is a compelling offer for our shareholders and I am confident that WaterFurnace and its employees have found an excellent strategic partner in NIBE. The combined talents of these two fine companies are aimed at helping people around the globe find sustainable energy solutions. As CEO of WaterFurnace and on behalf of my whole team, I can state that we are excited to be joining one of the market leaders in our industry“, says Tom Huntington, CEO of WaterFurnace.
Founded in 1983, WaterFurnace has a longstanding track-record as a premier brand and manufacturer of geothermal heat pump heating and cooling solutions in North America. The company’s product offering includes a range of geothermal heat pumps, smart control systems, hot water storage tanks and indoor air quality solutions. Products are marketed under the WaterFurnace and GeoStar brands in North America, and the WFI brand via a joint venture in China. In the financial year 2013, WaterFurnace achieved net sales of US$119 million with an EBIT* margin of 17%. Approximately seventy percent of net sales account for residential products, both retrofit and new construction, with the remainder representing solutions for commercial use. Headquartered in Fort Wayne, Indiana (USA), WaterFurnace has 267 employees and has been listed on the Toronto Stock Exchange since 1993.
NIBE, with 2013 net sales of SEK 9.8 billion (US$1.5 billion), as well as WaterFurnace have leading positions in their respective European and North American home markets. In view of the high pace of technology development and market consolidation, both companies believe that they together will operationally and strategically be better positioned to take a lead in the industry’s development.