Distribution giant G & L Beijer has signed a letter of intent with Carrier Corporation to distribute Toshiba residential and light commercial HVAC products in 11 European countries, including France and Germany.
Carrier’s Toshiba brand distribution operations accounted for approximately £120 million in sales in 11 European markets: Germany, France, Spain, Portugal, Italy, Sweden, Finland, Poland and the three Baltic States. The distribution rights in these countries will be exclusive to Beijer. The assets related to these operations, along with approximately 160 employees, will be transferred to G & L Beijer, with Beijer paying around £78 million, subject to due diligence. Carrier Corporation is G & L Beijer’s largest individual shareholder with 41.4 per cent of capital and 33.3 per cent of votes.
Beijer will operate the Toshiba business as a standalone division separate from the Beijer Refrigeration operations.
In the UK, Toshiba products will continue to be handled by Tpshiba’s UK HQ in Leatherhead.
Carrier Corporation has exclusive distribution rights outside of Japan for Toshiba brand HVAC products via its joint venture with Toshiba Corporation,
Joen Magnusson, Chief Executive of G & L Beijer said: “This is a strategic opportunity from several aspects. Air conditioning and heat pumps are priority growth areas, which are driven by an increased requirement for energy savings and greater consideration for the environment. G & L Beijer can bring its distribution capabilities to significantly enhance Toshiba sales while benefiting from expansion and diversification of its portfolio”
Beijer said Toshiba is a premier brand known for high-quality air-conditioning equipment. The company’s product development focuses on increased energy efficiency, consideration for the environment and high comfort level. G & L Beijer, with its strong distribution expertise and market presence, intends to invest in the Toshiba brand and thus enhance services to customers and grow Toshiba HVAC sales.
The company said the addition of the Toshiba brand distribution operations expands the Group’s operations to Germany and strengthens G & L Beijer’s position within air-conditioning and heat pumps in Europe, a higher growth market than commercial refrigeration. Higher energy prices have increased demand for more energy-efficient solutions and higher living standards continue to generate strong demands for comfort cooling. It means that the proportion of air-conditioning and heat pumps rises from around 20 to approximately 35 per cent of G & L Beijer’s total sales, the company reported.
The transaction is subject to a customary due diligence process and finalising the purchase agreement, which is expected to be signed no later than the third quarter of 2011. The completion of the transaction is also subject to obtaining required regulatory clearance.