Press release

NIBE Industrier AB acquires 60% of the shares in Gaumer Company Inc. based in Houston, Texas.

NIBE has reached an agreement to acquire 60% of the outstanding shares in Gaumer Company Inc. NIBE has also agreed to acquire the remaining 40% of Gaumer´s outstanding shares at a later time. Gaumer of Houston, Texas will become part of NIBE Element North America.

Gaumer is one of North America´s leading designers and manufacturers of electric heaters, controls and turn-key engineered systems for the Power Generation, Oil & Gas and Petrochemical markets. Gaumer´s product range for these markets is comprised, among other products, of Immersion and Circulation Heaters, Heater Control Panels, Liquid Fuel Gas Conditioning Systems as well as Integrated Heater Systems and Control Systems.

Founded in 1962, Gaumer has just over 115 employees, annual sales of $25.2 MUSD and an operating margin above 15%. Gaumer will continue to run its operations and service its customers from its Houston, Texas based manufacturing facilities and the management of the company will remain under the continued leadership of Mr. Gaurav Dhingra, President and Mr. Mark Crosby, General Manager.

“Gaumer represents another critical step in our strategy to become the leading electric heating systems supplier in North America; this time in the important Power Generation and Petrochemical markets where, previously, NIBE has had limited presence in North America. Gaumer´s exciting product development record, combined with NIBE´s existing activities in Europe in these same markets, will provide for significant synergies and growth opportunities going forward”, said Gerteric Lindquist, CEO of NIBE.

“It is also reassuring”, says Gerteric Lindquist, “that Gaumer´s current management, headed by Mr. Dhingra and Mr. Crosby, will continue to run the company and that Gaumer´s main shareholder, Mr. Jack McClanahan, will remain on the Board of Gaumer to provide support and strategic insight into Gaumer´s future over the next few years”.

Terms and condition of the agreement with Gaumer´s shareholders were not disclosed because the acquired shares of the business will only constitute a small part of the NIBE Group.

Gaumer will be consolidated into NIBE Element North America effective January 2, 2018.

For more information: Benny Torstensson, NIBE Industrier AB: +46 433-73 070

The information was submitted through Benny Torstensson for publication on December 18, 2017, 08 00 CET.