Radiator manufacturer Stelrad, has entered into an agreement with De Longhi Industrial S.A to acquire 100% of the share capital of Italian radiator manufacturer DL Radiators srl for €28.346 million on a debt free, cash free basis.
DL Radiators’ main manufacturing site is located in Moimacco, near Udine, Italy and it employs approximately 350 people. The product range includes steel panel, multicolumn steel, aluminium and towel warmer radiators, providing customers with flexible heat emitter solutions suitable for a wide variety of installations.
The acquisition extends the range of radiators available to Stelrad’s existing sales and distribution network, expands its routes to market, provides a complementary brand and increases manufacturing capacity.
DL Radiators generated €86.9 million revenue and €5.0 million normalised EBITDA for its financial year ended December 20211, with gross assets at 31 December 2021 of €62.9 million. The management team, led by CEO Stefano Valente, will continue to run the business with oversight from Stelrad, and the transaction is anticipated to close in the coming weeks.
Trevor Harvey, CEO of Stelrad, said: “This is a compelling transaction for Stelrad and allows us to grow our business through the provision of additional products and through geographical expansion. DL Radiators has strong brands with a significant customer base and we look forward to working with the team to realise value opportunities and expand the market for their higher value product ranges.
“Following completion of this transaction, Stelrad will be a market leader in six countries and hold a top 3 position in five more. We will continue to develop our mainland European relationships with the long-established regional distribution players in those territories, ensuring we continue to adapt to evolving routes to market.”
Valente added: “We firmly believe that the success of a company is built on the commitment of people who are passionate about their work and who can open up to the world and creatively contribute to its improvement. We see this as a shared value with Stelrad’s experienced team from the management through to sales and operations and we are excited to work alongside them to grow DL Radiators as a leading heat emitter manufacturer.
“The mission of DL Radiators is the creation of heating products fit for the future, which are able to improve not only the comfort of the rooms but the quality of everyday life, combining intuitive technological capabilities with Italian attention to design. Our partnership with Stelrad allows us to continue to fulfil this mission to provide a best-in-class offering.”