NIBE gets HSR nod to acquire WaterFurnace

Aug 14, 2014 - Swedish heating technology firm NIBE Industrier AB (STO:NIBE-B) has received clearance under the Hart-Scott-Rodino (HSR) act to buy US geothermal heat pumps maker WaterFurnace Renewable Energy Inc (TSE:WFI).

The two companies said in a statement today that the waiting period under the HSR act had expired and that the planned CAD-378-million (USD 346m/EUR 259m) transaction is not subject to any other antitrust conditions. Still, it needs to be approved by at least two-thirds of the votes cast by the target’s stockholders at a special meeting scheduled for August 18. The Ontario Superior Court of Justice also has to give its nod. Completion is seen to occur by the end of the month, the firms added.

Under the terms of the deal, NIBE will pay CAD 30.60 per WaterFurnace share in cash.

Indiana-based WaterFurnace manufactures geothermal heat pumps to cut energy usage by buildings for heating, cooling and hot water. The company also makes smart control systems, hot water storage tanks and indoor air quality solutions.

On Monday, the US firm said its second-quarter net profit had increased to USD 3 million from USD 2.2 million a year back, with revenues rising 29.7% year-on-year to USD 33.1 million.

(CAD 1.0 = USD 0.917/EUR 0.684)

(USD 1.0 = EUR 0.747)

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