Swiss building materials group Arbonia AG (SWX:ARBN) said on February 27, 2024 that it is in advanced negotiations to sell its climate division as it seeks to focus on its doors business. Arbonia initiated a structuredsales process with several possible buyers after receiving unsolicited expressions of interest, prompted by comparable transactions in the market. If a deal is reached, the Swiss company plans to return a significant portion of the proceeds to its shareholders.

The remaining sum will be used for lowering debt. The valuation of the climate division used for the negotiations was determined based on a multiple of earnings before interest, tax, depreciation and amortisation (EBITDA), Arbonia said. The metric is commonly used in the market for companies operating in the heating, ventilation, and air-conditioning sector, the firm added.

With eight production sites and five development centres, Arbonia's climate division offers products such as ventilation units, fan coils, heat pumps, storage batteries, underfloor heating systems and radiators. In 2023, the unit generated revenue of CHF 576.6 million with an EBITDA of CHF 42.8 million, according to the company's financial report. The potential divestment would allow Arbonia to focus on the remaining doors division, which will be further strengthened through acquisitions.

The unit aims at expanding its position in central and eastern Europe and achieving above-average market growth in the future.