Sweden-headed heating appliance developer and manufacturer NIBE Group has announced that is acquiring another 41 percent of the shares in the Canadian wood stove company Pacific Energy Fireplace Products Inc. to become the majority owner of the company.
Please reload the page
Do you want to read the whole article?
- Six editions per year
- Full access to all digital content
- The E-magazine Bioenergy international
- And more ...
Early in 2021, NIBE acquired 10 percent of the shares in the British Columbia (BC) based wood stove company Pacific Energy. At the same time, an agreement was signed to acquire the remaining shares in 2022 and 2023.
Strong position in North America and Australia
Founded in 1978 in Duncan, Vancouver Island by Paul Erickson, Pacific Energy Fireplace Product has a strong and well-established position in North America, as well as a stable sales platform in Australia.
The company has a complete range of products for the North American market with an emphasis on wood-fired stoves and fireplace inserts as well as a broad gas-fired offering.
Pacific Energy currently has sales of about CA$50 million and an operating margin exceeding 10 percent. The business includes product development, production, sales, and marketing and has a total of about 170 employees.
It is with great pleasure that we can announce today that we have been entrusted as the majority shareholder of Pacific Energy and that the remaining 49 percent of the shares in the company can be acquired in the first half of 2023. The acquisition is of course intended to further strengthen our market position in North America. Pacific Energy has a very good reputation in the North American market, which has been built up over decades thanks to Paul Erickson’s passion for stoves and fireplaces, combined with strong and long-term customer relationships, said Gerteric Lindquist, Managing Director and CEO of NIBE Industrier.
The products are sold and marketed under three brands to a number of major distributors, who in turn process and sell on to specialist trade retailers:
- “Pacific Energy” is the main brand with a broad product range for wood and gas,
- “True North” is the brand for a medium-priced wood-fired range,
- “Town & Country” is in the premium segment for gas-fired products.
Pacific Energy will be included in the NIBE Stoves business area and will be consolidated from 1 July 2022. The remaining 49 percent of the shares will be acquired in the first half of 2023.
The purchase price nor the value of the acquisition has not been disclosed as the acquired business will only constitute a minor part of the NIBE Group.
The current management team, together with Paul Erickson, will remain with the company to keep operations going and at the same time further develop them together with us, which is totally in line with our company philosophy, ended Gerteric Lindquist.