BDR Thermea is the proposed name of the third largest heating manufacturing business in Europe, subject to EU competition authorities agreeing Dutch firm De Dietrich Remeha's merger with British competitor Baxi Holdings.
According to sources close to merger talks, BDR Thermea is being proposed as the new name and clearance from the EU competition authorities, approving the heating giants' merger, is expected imminently.
The Dutch heating group Die Dietrich Remeha will hold the majority share in the business. Baxi Group's shareholders (BC Partners and Electra Partners), will invest around €100 million in additional equity in the new group as minority partners. Baxi management will join BC Partners and Electra Partners as minority shareholders.
Die Dietrich Remeha is not looking to make large scale cost reductions when it comes to staff. However as a bigger business it hopes to benefit from larger cost savings when it comes to purchasing materials.
De Dietrich Remeha and Baxi made public their intention to enter merger talks in June 2009. At the time, the groups said the combined business would have pro forma revenues of €1,800 million. Its earnings before interest, tax, depreciation, and amortisation (EBITDA) would be more than €225m.
Last June, Martyn Coffey, CEO of Baxi Group, said: 'There is a strong industrial logic to combining De Dietrich Remeha Group and Baxi Group, particularly in the context of today's global economic uncertainties and difficult financing markets. If this transaction completes, then together with the new funds invested by our shareholders, it will transform our capital structure and will be very positive for the business, our employees and for our existing customers.'
Baxi Group is Europe's fourth biggest manufacturer and distributor of domestic and commercial water and space heating systems. Headquartered in the UK and employs more than 4,200 people with a turnover of around €1.2 billion. Baxi Group's leading heating brands in Europe include Baxi in the UK, Italy, Turkey, Russia and some East European markets; Heatrae Sadia and Potterton in the UK, Chappée and Ideal Standard in France, BaxiRoca in Spain, Broetje in Germany and Baymak in Turkey.
The De Dietrich Remeha group is owned by Remeha Group B.V. and its headquarters are in The Netherlands. Ranked Europe's 7th in size in heating and hot water equipment, the company has strong a distribution and installer network in France, The Netherlands, UK, Germany, Belgium and Poland. The group's brand names are De Dietrich, Oertli, Remeha, Serv'elite and Sofath. Employing 2,200 people, the group achieved a turnover of €615 million in 2008.