Lindab to acquire UK Ventilation firm
Lindab, the Swedish-based provider of steel and sheet metal solutions to the construction sector, today announced that it has signed an agreement to acquire CCL Veloduct Ltd, a UK supplier of products and services for air-duct systems and air movement.
CCL Veloduct Ltd employs 265 staff and had net sales in the twelve-month period ending June 2006 of GBP 39 million.
Lindab's plan is to combine Lindab Ltd's Ventilation Business Unit with CCL Veloduct to create a strong UK supplier of products and related equipment for circular ductwork, air movement and indoor climate. The combination of the two companies is expected to result in significant synergy benefits.
"Circular ducts have many proven advantages in the ventilation industry, notably in energy and installation efficiency. Joining two companies that have led the way in this product area, makes perfect business sense," says Hannu Paitula, Business Area Manager, Lindab Ventilation.
Lindab Group operates two business areas, Ventilation and Profile. The group generated sales of SEK 6,214 million in 2005, of which the Ventilation business area represented SEK 3,241 million. The most important markets for the Ventilation business area are the Nordic countries and Western Europe.
The deal will make the UK one of the most important markets for Lindab, improving the offering to customers through a larger product base and a wider service network.
CCL Veloduct Ltd employs 265 staff and had net sales in the twelve-month period ending June 2006 of GBP 39 million.
Lindab's plan is to combine Lindab Ltd's Ventilation Business Unit with CCL Veloduct to create a strong UK supplier of products and related equipment for circular ductwork, air movement and indoor climate. The combination of the two companies is expected to result in significant synergy benefits.
"Circular ducts have many proven advantages in the ventilation industry, notably in energy and installation efficiency. Joining two companies that have led the way in this product area, makes perfect business sense," says Hannu Paitula, Business Area Manager, Lindab Ventilation.
Lindab Group operates two business areas, Ventilation and Profile. The group generated sales of SEK 6,214 million in 2005, of which the Ventilation business area represented SEK 3,241 million. The most important markets for the Ventilation business area are the Nordic countries and Western Europe.
The deal will make the UK one of the most important markets for Lindab, improving the offering to customers through a larger product base and a wider service network.
"This acquisition represents a further step in Lindab's strategy to accelerate growth in the circular duct business outside of the Nordic countries and strengthens our position in Western Europe" says Kjell Åkesson, CEO, Lindab Group.
The acquisition is subject to Lindab obtaining approval by relevant competition authorities and to limited confirmatory due diligence. The transaction is expected to be closed at the end of October.
The acquisition is subject to Lindab obtaining approval by relevant competition authorities and to limited confirmatory due diligence. The transaction is expected to be closed at the end of October.