Midea Electrics Netherlands BV signed an agreement to acquire Climate Division of Arbonia for an enterprise value of approximately CHF 740 million on April 18, 2024. Up to CHF 400 million of the sales proceeds are to be returned to the shareholders after completion of the transaction. In addition, net sale proceeds will be used to strengthen the doors business and to reduce net debt.

Following the reduction of net debt, it will propose a distribution of around CHF 280 million in the form of a nominal value repayment of CHF 4.00 per share as part of an Extraordinary General Meeting. The nominal value would decrease from previously CHF 4.20 to CHF 0.20 per share as a result of the repayment. This nominal value repayment would presumably be tax-free for the majority of Arbonia shareholders.

The doors business will strategically be further developed both organically and through acquisitions, with the objective of making Arbonia a European market leader for doors made of wood and glass. The transaction is subject to the required approvals by relevant regulators. The closing of the transaction is expected in the second half of 2024.

Jefferies and UBS are acting as joint financial advisers to Arbonia AG (SWX:ARBN). Matthias Courvoisier, Martin Furrer, Philippe Reich, Julia Schieber, Roger Thomi, Boris Wenger, Olha Demianiuk from Baker & McKenzie (Zurich) acted as legal advisors for Arbonia. Matthias Koehler, Andreas Schulz, Daniel Bork, Ariane Schaaf, Thomas Gierath, Jon Marcus Meese, Florian Tannen, Joachim Froehlich from Baker & Mckenzie Partnerschaft Von Rechtsanwälten Wirtschaftsprüfern,Steuerberatern Und Solicitors and Leo Zhang from Baker & Mckenzie Paul Amberg from Baker & McKenzie Madrid S.L. ,Rita Marchetti from Baker Tilly Italia Legal S.R.L. acted as legal advisors to Arbonia AG (SWX:ARBN).Baker & McKenzie A.A.R.P.I., Baker & McKenzie s.r.o., advokatni kancelar, Baker & McKenzie Advokatbyrå KB, Baker & Mckenzie Gruszczynski I Wspolnicy Kancelaria Prawna Spolka Komandytowa acted as legal advisors to Arbonia AG (SWX:ARBN).

Goldman Sachs is acting as exclusive financial advisor, and Freshfields Bruckhaus Deringer LLP is acting as legal advisor, to Midea Group. Tino Gaberthüel, Matthias Oertle, Anja Affolter Marino, Astrid Waser, Alexander Greter from Lenz & Staehelin acted as legal advisors to Midea Electrics Netherlands BV.