Glen Dimplex buys German cooling business in deal likely to be worth €40m

Glen Dimplex, the electrical company owned by the Naughton family, has acquired the European process cooling business of New York Stock Exchange-listed group Lennox International.

The price paid for the Krunkel, Germany-based Hyfra Process Cooling unit was not disclosed, but an industry source said acquisitions of this kind typically follow the value of annual turnover, which in this case is around €40 million.

The purchase of is the fourth made by Glen Dimplex in the past 18 months, as the group focuses on supporting the energy transition across its four product areas of heating and ventilation, precision cooling, flame, and consumer appliances.

Glen Dimplex recently acquired Nordic electric heating appliance supplier Adax, and a minority stake in Indian based precision cooling business Wener Finlay.

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The company also recently bought the 30 per cent stake in French heating and ventilation business Muller Group that it did not own, having taken a 70 per cent holding in the unit in the late 1990s.

The total spent by Glen Dimplex on recent acquisitions is understood to be close to €200 million.

In November last year Lennox said it would explore “strategic alternatives” for its European commercial heating, ventilation, and air conditioning and refrigeration business, which accounted for just 5 per cent of group revenue.

“Divesting this European business will enable us to continue our focused strategy on North America where we are best positioned to achieve our revenue growth and profit margin targets,” said Lennox chief executive Alok Maskara.

The acquisition of Hyfra Process Cooling, which employs 245, will bring to more than 1,500 the number of staff employed by Glen Dimplex in Germany, across its heating and precision cooling operations.

Fergal Leamy, chief executive of Glen Dimplex, extended a “warm welcome” to Hyfra employees joining the group.

“This strategic acquisition marks an important milestone for Glen Dimplex, enabling us to further expand our precision cooling business globally, and align with customer needs as we transition to a more sustainable future,” he said.

The transaction is expected to be completed in the fourth quarter of this year, subject to obtaining the required consents and customary closing conditions.

In March, Mr Leamy told The Irish Times that Glen Dimplex intended to do a “number of deals” within the next year to capitalise on opportunities in heating and ventilation as the world moves away from fossil fuels, and it is understood that the group is still actively looking for acquisition opportunities.