The NIBE Group is acquiring another 41% of the shares in the Canadian wood stove company Pacific Energy Fireplace Products Inc. on Vancouver Island, thus becoming the majority owner of the company.
Early in 2021 NIBE acquired 10% of the shares in the Canadian wood stove company Pacific Energy. At the same time an agreement was signed to acquire the remaining shares in 2022 and 2023.
Pacific Energy, which was founded as early as 1978 by Paul Erickson, is headquartered in Duncan, Vancouver Island, Canada and has a strong and well-established position in North America, as well as a stable sales platform in Australia. The company has a complete range of products for the North American market with an emphasis on wood-fired products, but also has a broad gas-fired offering. Pacific Energy currently has sales of about CAD 50 million and an operating margin clearly exceeding 10%. The business includes product development, production, sales and marketing and has a total of about 170 employees.
"It is with great pleasure that we can announce today that we have been entrusted as majority shareholder of Pacific Energy and that the remaining 49% of the shares in the company can be acquired in the first half of 2023. The acquisition is of course intended to further strengthen our market position in North America. Pacific Energy has a very good reputation on the North American market, which has been built up over decades thanks to Paul Erickson’s passion for stoves and fireplaces, combined with strong and long-term customer relationships,” says Gerteric Lindquist, Managing Director and CEO of NIBE Industrier.
The products are sold and marketed under three brands to a number of major distributors, who in turn process and sell on to specialist trade retailers. Pacific Energy is the main brand with a broad product range for wood and gas. True North is the brand for a medium-priced wood-fired range and Town & Country is in the premium segment for gas-fired products.
“The current management team, together with Paul Erickson, will remain with the company to keep operations going and at the same time further develop them together with us, which is totally in line with our company philosophy,” says Gerteric Lindquist.
Pacific Energy will be included in the NIBE Stoves business area and will be consolidated from 1 July 2022. The remaining 49% of the shares will be acquired in the first half of 2023. The purchase price is not specified because the acquired business will only constitute a small part of the NIBE Group.
For more information: Gerteric Lindquist, CEO and Hans Backman, CFO; +46 433 273 000
This information was submitted by the contact persons above for publication on 6 July 2022 at 08.00 CEST
NIBE Group – a global group with companies and a presence worldwide
NIBE Group is a global organisation that contributes to a lower carbon footprint and better utilisation of energy. In our three business areas – Climate Solutions, Element and Stoves – we develop, manufacture and market a wide range of environmentally-friendly, energy-efficient solutions for indoor climate comfort in all types of properties, plus components and solutions for intelligent heating and control in industry and infrastructure.
Since its beginnings in the town of Markaryd in the province of Småland 70 years ago, NIBE has grown into a global group with 20,400 (18,700) employees on average. From the very start, the company has been driven by a strong culture of entrepreneurship and a passion for corporate social responsibility. Its success factors are long-term investments in sustainable product development and strategic acquisitions. Combined, these factors have brought about strong, targeted growth, which generated sales of just over SEK 30 billion (SEK 27 billion) in 2021.
NIBE has been listed under the name NIBE Industrier AB on the Nasdaq Nordic Large Cap list since 1997, with a secondary listing on the SIX Swiss Exchange since 2011.