A combined company would move into the top three of boiler manufacturers in Europe alongside Vaillant and Bosch with total sales of £1.5billion, EBITDA of more than £192million and a workforce of 6,400.
If the merger deal is approved by lenders, Baxi’s private equity owners BC Partners and Electra Partners will invest around £100mill of additional equity in the new group as minority partners with Remeha Group holding the majority.
De Dietrich Remeha chief executive Group Rob van Banning said: 'This combination will create a new group that is a true leader in European heating with further potential in other geographies.”
Baxi Group chief executive Martyn Coffey said there was a “strong industrial logic” to the merger “particularly in the context of today's global economic uncertainties and difficult financing markets.”
He added: “If this transaction completes, then together with the new funds invested by our shareholders, it will transform our capital structure and will be very positive for the business, our employees and for our existing customers.”
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