Business
Acquisition of DL Radiators srl
Acquisition of DL Radiators srl.
About this update from Stelrad Group Plc
[{"type":"text","content":"\n \n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, CANADA, JAPAN, SOUTH AFRICA OR AUSTRALIA OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION WOULD BE UNLAWFUL.\n \n \n \n \n \n \n \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.\n \n \n \n \n \n \n \n \n \n 23 June 2022\n \n \n \n \n \n STELRAD GROUP PLC\n \n \n \n \n (\"Stelrad\" or \"the Group\")\n \n \n \n \n \n \n \n \n \n Acquisition of DL Radiators srl\n \n \n \n \n \n \n \n \n \n Stelrad to acquire DL Radiators, expanding product range and geographical presence\n \n \n \n \n \n \n \n \n Stelrad, a leading specialist manufacturer and distributor of radiators in the UK, Europe and Turkey, today announces it has entered into an agreement with De Longhi Industrial S.A to acquire 100% of the share capital of DL Radiators srl (\"\n DL Radiators\n \") for €28.346 million on a debt free, cash free basis. DL Radiators is a leading Italian heat emitter manufacturer which produces and sells both hydronic and electric radiators into the domestic heating market.\n \n \n \n \n \n DL Radiators' main manufacturing site is located in Moimacco, near Udine, Italy and employs approximately 350 people. Its product range includes steel panel, multicolumn steel, aluminium and towel warmer radiators, providing customers with flexible heat emitter solutions suitable for a wide variety of installations.\n \n \n \n \n \n Stelrad's acquisition of DL Radiators extends the range of radiators available to its existing sales and distribution network, expands its routes to market, provides a well established complementary brand and increases its manufacturing capacity. These criteria are aligned with the acquisition policy and strategy stated at the time of the Group's admission to the London Stock Exchange in 2021.\n \n \n \n \n \n DL Radiators generated €86.9 million revenue and €5.0 million normalised EBITDA for its financial year ended December 20211, with gross assets at 31 December 2021 of €62.9 million.\n \n \n \n \n \n Upon closing, Stelrad will pay a cash consideration of 28.346 million based on a debt free, cash free enterprise value of six times normalised EBITDA.\n The transaction will be funded from existing facilities including tempor...