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5 Sep 2018

MCF advised Uponor in the sale of German Zent-Frenger GmbH to Swegon Group

MCF has advised Finland-based Uponor, a listed company and leading global provider of systems and solutions in the fields of hygienic drinking water delivery, energy-efficient heating and cooling and reliable infrastructure, in the divestment of its German subsidiary Zent-Frenger GmbH. Zent-Frenger produces radiant ceilings and develops and sells customised commercial heat pumps and concrete activation systems. It is being acquired by Swedish Swegon Group AB (Swegon) which manufactures and sells products and systems for an optimal indoor climate. The transaction represents MCF’s 3rd successful corporate finance advisory mandate for Uponor and shows the strong ties and integrated approach between MCF’s offices in Germany and the Nordics, providing clients with a unique expertise and network in the Northern European M&A market.

“Zent-Frenger has shown a very strong development in recent years, but since its business model is project-based and includes installation service while Uponor is focused on distribution via trade partners and heating engineers the synergy potential remained limited. MCF is one of our longstanding partners and repeatedly has proven to be a true expert for M&A in Northern Europe. In Swegon Group, their team has identified a new owner who can take full advantage of Zent-Frenger’s growth potential, creating a veritable ‘win-win-win situation’ for Swegon, Zent-Frenger, and us.”

Jan Peter Tewes

Uponor President, Building Solutions – Europe

The Deal

In 2012, Uponor had acquired Zent-Frenger to extend its product offering in large commercial projects. The envisaged operational synergies were limited and thus the strategic fit did not materialise. For the now acquiring company Swegon however, who is one of the leading European indoor climate companies, Zent-Frenger’s products are a natural addition to its room unit product portfolio. Thus, the transaction substantially strengthens Swegon’s market presence in Germany, one of its focused growth markets.

The acquisition is subject to approval by antitrust authorities and closing is expected in October.

The Target

Zent-Frenger is one of the pioneers in radiant ceilings. Its products are used to create a comfortable indoor climate in commercial buildings such as offices and hotels, as well as residential apartment buildings. The company was founded in 1954 and is based in Heppenheim, Germany, and employs around 100 people in its Heppenheim production site and branches in Hamburg and Leonberg. It reported a turnover of around EUR 30 million in 2017.

Client Statement

Jan Peter Tewes, Uponor President, Building Solutions – Europe, said: “Zent-Frenger has shown a very strong development in recent years, but since its business model is project-based and includes installation service while Uponor is focused on distribution via trade partners and heating engineers the synergy potential remained limited. MCF is one of our longstanding partners and repeatedly has proven to be a true expert for M&A in Northern Europe. In Swegon Group, their team has identified a new owner who can take full advantage of Zent-Frenger’s growth potential, creating a veritable ‘win-win-win situation’ for Swegon, Zent-Frenger, and us.”

About Uponor

The year 2018 marks Uponor’s 100-year anniversary. Uponor’s success is built on strong partnerships with its customers and stakeholders in the past, present and future.

Uponor is a leading international systems and solutions provider for safe drinking water delivery, energy-efficient radiant heating and cooling and reliable infrastructure. The company serves a variety of building markets including residential, commercial, industrial and civil engineering. Uponor employs about 4,000 employees in 30 countries, mainly in Europe and North America. In 2017, Uponor’s net sales totalled nearly EUR 1.2 billion. Uponor is based in Finland and listed on Nasdaq Helsinki.

About Zent-Frenger GmbH

Zent-Frenger was founded in 1954 and is one of the pioneers in radiant ceilings. In addition, the company sells customised commercial heat pumps and provides concrete activation systems. The company is based in Heppenheim, Germany, and operates branches in Hamburg and Leonberg. Zent-Frenger has been a subsidiary of Uponor Group since 2012 and employs around 100 people. It reported a turnover of around EUR 30 million in 2017.

About Swegon Group AB

Swegon AB is a company in the Latour group and is market leader within energy efficient ventilation and climate systems. Swegon has 14 production sites in Sweden, Finland, Italy, India, North Amercia, Germany, Belgium and the United Kingdom. The company employs 2,200 staff and generates an annual turnover of approximately EUR 450 million.

Get in touch

Stefan Edlich

Hamburg