Gränichen, Switzerland, May 13, 2008. – Zehnder Group, with international operations in the indoor climate sector (radiators and comfort ventilation systems), has sold Faral S.p.A., its Italian subsidiary, which manufactures aluminum radiators, to Bavaria Industriekapital AG/Germany, effective as of January 1, 2008. The parties have agreed to keep the terms of the transaction confidential.
In 2007 Faral S.p.A. had sales of EUR 48 million and employed 240 employees.
The sale of its aluminum radiator business is a further step in Zehnder Group’s strategy to focus its activities on the niches of high-end and customized design steel radiators. It also supports the further expansion of the comfort ventilation business in terms of management capacity and financial resources.
This divestment will have a positive impact on the Group’s EBIT margin.
In 2008 however, the divestment will result in an extraordinary charge of EUR 18-19 million (thereof approx. ninety percent non-cash). The charge will be reflected in the Group’s interim financial statements as per June 30, 2008. With this charge, the company expects to report a net loss in the first semester 2008 (net profit first semester 2007: EUR 11.3 Mio.).