NIBE has agreed a deal to acquire 31% of the shares in Swiss firm Schulthess Group AG.
The manufacturer has also tabled a recommended voluntary public tender offer to acquire all the remaining shares.
As a result of the agreement, which will be presented in Zurich on Wednesday, a leading European firm with heat pump technology, renewable energy equipment and a strong market presence will be created.
NIBE’s offer values the total equity of the firm at CHF 638 million, and will be paid in 60% cash and 40% in new NIBE B shares.
The board of directors at Schulthess has already recommended the deal, while NIBE is expected to apply for a secondary listing of the B shares on the SIX Swiss Exchange.
Gerteric Lindquist, CEO of NIBE, said: “This transaction is definitely NIBE’s largest to date, and I am convinced that it will be very successful.
“The transaction between Schulthess and NIBE represents a strategic match and is well in line with our long-term strategy in the evolving sustainable energy solutions markets in Continental Europe. It is also pleasing that both businesses share the same entrepreneurial tradition, market experience and technological vision.”