Following the receipt of all necessary EU competition approvals, the transaction initially announced in July 2009 between De Dietrich Remeha Group and Baxi Group has been completed. The new group will be called BDR Thermea, recognising the contribution both groups bring to the combination.
The complementary geographic profile of De Dietrich Remeha Group and Baxi Group will put the new group in a leading position in all Western European countries, with particularly strong positions in the rapidly growing markets of Eastern Europe, Turkey, Russia, North America and China.
Rob van Banning, formerly CEO of De Dietrich Remeha Group and appointed as the new CEO of BDR Thermea, said: “I am delighted to be able to announce the successful creation of our new company. With our complementary geographic strengths and entrepreneurial culture, we have created a new group that is a true leader in European heating products with further potential in other geographies. Cost synergies can be created through implementing best in class technological platforms and efficient operations, supporting the employees of our two organisations and reinforcing the products and services we deliver to our customers. This is a very significant step in our growth strategy of the past eight years”.
The heating market is consolidating. According to Martyn Coffey, CEO of Baxi Group and now member of the BDR Thermea Board, forming this new company brings the benefits of consolidation to the European heating market. “This is particularly critical given the context of today’s global economic uncertainties and difficult financing markets”.
Jan Janssen and Andrew Newington, respectively chairman and member of the supervisory board of BDR Thermea, said: “The combination of innovation, excellent service and distribution, local brands and a broad geographic coverage offers a long term perspective in world class heating and sanitary hot water. It is a great opportunity for the shareholders behind BDR Thermea to create a new group with a long term perspective supported by a strong financial platform. It is a great example of how private equity can act as a long term shareholder supporting the strategic initiatives of our investee companies.”