Heating and Ventilating

G & L BEIJER, the Swedish owners of UK wholesaler Dean & Wood intends to acquire Carrier's acr wholesale distribution operations in Europe through a new share issue to Carrier.
The transaction will create a European-wide distributor with an enhanced product portfolio and wider geographic coverage. Installers and customers will benefit from greater choice and access to air conditioning and refrigeration products.

The combined operations are expected to have annual net sales of £489m with an operating profit of £42m.

The combined company will have operations in 21 countries including the Nordic and Baltic countries, the UK, Holland, Spain, Belgium, Switzerland, France, Italy, some Eastern European countries and South Africa.

Carrier will add an enhanced product portfolio to G & L Beijer's existing product programme.

Joen Magnusson, managing director of G & L Beijer said, 'We are excited by the enhanced prospects for growth and the considerable benefits to all stakeholders that this combination offers. Given the highly complementary nature of our European assets, operations and geographic footprint, this is a logical and compelling combination that we expect will create significant value for shareholders while benefiting customers, installers and the market overall. We look forward to partnering with Carrier to develop the combined business.'

The transaction is subject to completing satisfactory due diligence reviews as well as reaching final agreement, which is expected around the end of 2008. Completion of the transaction will also be subject to customary closing conditions, such as obtaining regulatory clearances and third-party consents as required. The transaction will also require the approval of G & L Beijer shareholders.