NIBE Industrier acquires 50% of CGC Group of Companies

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By Ted Liu

NIBE Industrier AB (OMX Stockholm: NIBE-B; SIX Swiss: NIBN) has acquired 50% of the shares in heat pump company CGC Group of Companies Inc. from current owners and founders, Bill Browne and Bob Rutherford, with an option to acquire the remaining 50% of the shares no later than spring 2022.

Financial terms were not disclosed. Markaryd, Sweden based NIBE said the purchase price is immaterial as the acquired business will only constitute a small part of the NIBE Group.

CGC will be included in the NIBE Climate Solutions business area and will be consolidated from February 1, 2017.

Founded in 1995, CGC is based in Mississauga, Ontario with its manufacturing facility in Fergus. CGC mainly targets commercial properties under the well known brands Bulldog Heat Pump, Compax and Varipak. CGC employs approximately 80 employees with sales of SEK 120 million or CDN $18 and an operating margin of 19%.

NIBE is an international heating technology company with business operations organized in three separate business areas: NIBE Climate Solutions, NIBE Element and NIBE Stoves.

In June 2016, NIBE acquired Climate Control Group Inc. (CCG) and six of its wholly owned subsidiaries from LSB Industries Inc. (NYSE: LXU) for US $364 million. CCG was consolidated under the NIBE Climate Solutions business area. CGC had sales of approximately SEK 2,300 million, an operating margin of approximately 7.3% and around 1,250 employees.

photo credit: CGC Group of Companies