Kooltech Aberdeen to be sold to FSW10th February 2024
UK: The Aberdeen branch of air conditioning distributor Kooltech is to be sold to refrigeration wholesaler FSW in a deal to clear the way for Kooltech’s purchase by Wolseley UK.
In January last year, Wolseley UK, with around 40 Climate Centre branches across the UK, announced its intention to acquire Kooltech and its eight branches.
The acquisition, which was originally expected to have been completed by the middle of 2023, fell under the gaze of the UK’s Competition and Markets Authority (CMA). At the end of the year the CMA announced that following a phase 1 investigation, it had provisionally found that the deal raised competition concerns in Aberdeen – “potentially leaving customers to face higher prices or lower quality services”.
The CMA recognised that while the merged business would continue to face sufficient competition from rivals in most locations, Climate Center and Kooltech were the only wholesalers of AC and refrigeration products in Aberdeen.
Under an agreement with FSW, the Kooltech Aberdeen branch on the Altens Industrial Estate will now become part of the FSW branch network. FSW currently only has branches as far north as Glasgow and Edinburgh.
The CMA said that it considered that FSW had “sufficient resources and expertise to provide the necessary back-office and strategic support, a well-recognised brand and existing customers in Aberdeen to enable the divestment business to operate as a competitor to Wolseley”.
None of the parties involved have yet commented on the proposals.
Wolseley/Kooltech remain committed to merger deal – 23 November 2023
UK: Kooltech and Wolseley are said to be committed to addressing concerns raised by the Competition and Markets Authority regarding the proposed takeover announced at the beginning of this year. Read more…
CMA investigates Wolseley/Kooltech deal – 13 September 2023
UK: The acquisition of air conditioning equipment distributor Kooltech by wholesaler Wolseley is being investigated by the UK Competition and Markets Authority (CMA). Read more…