Swedish NIBE Industrier AB acquires the Czech Republic’s largest manufacturer of electric water heaters – DZ Dražice
- Engineering, water heaters
- Target company
- Družstevní závody Dražice – strojírna s.r.o.
- 7 private individal shareholders
- NIBE Industrier AB
- Our role
- Advisory to buyer
- Transaction size
DZ Dražice (Družstevní závody Dražice – strojírna s.r.o.) is the Czech Republic’s leading name in the development, manufacturing and marketing of electric water heaters. In addition to serving a large domestic market, DZ Dražice exports to several countries. The company has a long history. Founded in 1900, it has been, like NIBE, making electric water heaters since the 1950s. DZ Dražice had approximately 250 employees and annual sales revenues above EUR 20 million.
The NASDAQ-listed Swedish, NIBE Industrier AB (NIBE.B), together with its subsidiaries, develops, manufactures, markets, and sells various energy-efficient solutions for indoor climate comfort and components and solutions for intelligent heating and control worldwide. The company operates in three areas: NIBE Climate Solutions, NIBE Element, and NIBE Stoves. DZ Dražice will form part of the NIBE Heating business area. The acquisition will help improve NIBE’s production flexibility, expand internationally, and use DZ Dražice as a platform for sales of NIBE’s heat pumps in the Czech Republic and Slovakia.
A partner of Merger Vision originated the transaction for the buyer and led the team providing M&A advisory throughout negotiations with sellers, some of them being key managers of the target company.
Mr Mareš addressed us as a representative of one of the largest investment banks in the CEE region and advisor to one of the Western European leaders in our sector, Swedish listed company NIBE Industrier AB, which was looking for growth opportunities in the CEE region. Finally, all shareholders decided to initiate a competitive auction process, in which the investor represented by the team led by Mr Mareš won. We valued the directness of negotiations and respect for jointly agreed procedures.