CAREL acquires an entire stake in two European companies with production facilities

The companies, Klingenburg GmbH and Klingenburg International Sp. Z.o.o. are leading producers of a wide range of products used mainly for heat recovery in ventilation and humidification systems, adiabatic cooling and air purification.

 

The two companies are European leaders in producing and selling rotary and plate heat exchangers, essential elements in heat recovery and, therefore, in guaranteeing significant energy savings in ventilation systems. In particular, the main advantages of rotary technology, making up most of Klingenburg’s business (and for which also benefit from product and production process patents), are associated with the ability to treat large amounts of air while maintaining compactness and high efficiency of the component. They are used in multiple applications: in addition to being used in air handling units in residential and commercial buildings, the rotary heat exchangers are widely used in various industrial processes. Klingenburg also offers solutions for humidification (mainly for indirect adiabatic cooling) and the purification of the air through UV technology, together with services supporting product solutions.

The companies employ around 200 employees and have two production facilities, one in Germany and one in Poland. They also boast a direct commercial presence in the United Kingdom, Spain and the United States. Aggregated revenues on 31 December 2021 amount to approximately Euro 39.1 million with an EBITDA of Euro 2.4 million and net cash of Euro 4.8 million.

The transaction rationale is attributable, first, to implementing one of the main cornerstones of the Group’s strategy, calling for a growth path through M&A and products complementary in applications of reference. Furthermore, it aims at strengthening CAREL’s positioning in the industry of air handling units, joining the acquisitions of Recuperator S.p.A. and EnginiaS.r.l, completed respectively in 2018 and 2021, responding to the same logic. 

The high degree of complementarity between Recuperator and Klingenburg regarding the respective technologies of specialisation (plate exchangers for Recuperator and rotary for Klingenburg) and to the application areas will allow CAREL to develop industrial and commercial synergies, resulting in holding a top-level role in such sector, in Europe and also outside continental boundaries, confirming at the same time its ability to offer itself always more as the sole supplier of complete systems of air treatment units.

The effects of the transaction also reflect positively on Klingenburg, who will benefit from an improved competitive positioning and investment capability, in addition to exceptionally advanced technological know-how. To this, the global footprint of the CAREL Group is added, as well as its extensive customer base, which will open new markets and new geographies with the possibility of producing in the United States.

Francesco Nalini, CEO of the CAREL Group, commented: “The transaction completed today confirms once again the ability of the Group to pursue its growth objectives through M&A with coherence and timeliness. Specifically, it represents an additional step towards the enrichment of the product range geared to the industry of air handling units, as well as the completion of the technologies offered in the heat exchangers, already partially covered with the Recuperator acquisition in 2018. Therefore, the company continually presents itself as a supplier of complete control solutions with high added value in the conditioning and refrigeration industry, with energy efficiency as one of their main characteristics.”