SWEDEN: Heat pump manufacturer NIBE is to acquire US geothermal heat pump heating and cooling solutions company WaterFurnace in a $378m deal.
WaterFurnace will continue to operate as a separate entity under the leadership of ceo Tom Huntington and his management team. NIBE intends to develop the business as a growth platform in North America.
“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,” said NIBE ceo Gerteric Lindquist.
“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.”
Founded in 1983, WaterFurnace is a premier US geothermal heat pump brand. 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. Net sales were $119m last year, with 70% of sales in the residential sector.