Press release
NIBE acquires another 41% of Pacific Energy Fireplace Products Inc.
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 (0) 433-27 30 00.
This information was submitted by the contact persons above for publication on 6 July 2022 at 08.00 CEST
