Radiator maker heats up growth prospects with acquisition of Italian counterpart

Stelrad a Mexborough-based manufacturer and distributor of radiators, has struck an agreement with De Longhi Industrial SA to acquire 100% of the share capital of DL Radiators srl for €28.346m/£24.4m.

DL Radiators is an Italian heat emitter manufacturer which produces and sells both hydronic and electric radiators into the domestic heating market.

Its main production site is in Moimacco, near Udine, Italy and employs approximately 350 people. Its product range includes steel panel, multicolumn steel, aluminium and towel warmer radiators, providing customers with flexible heat emitter solutions suitable for a wide variety of installations.

Stelrad’s acquisition of DL Radiators extends the range of radiators available to its existing sales and distribution network, expands its routes to market, provides a well established complementary brand and increases its manufacturing capacity.

DL Radiators generated €86.9m/£74.8m worth of revenue and €5m/£4.3m normalised EBITDA for its financial year ended December 2021, with gross assets at 31 December 2021 of €62.9m/£54.1m.

Trevor Harvey, CEO of Stelrad, said: “This is a compelling transaction for Stelrad and allows us to grow our business through the provision of additional products and through geographical expansion.

“DL Radiators has strong brands with a significant customer base and we look forward to working with the team to realise value opportunities and expand the market for their higher value product ranges.

“Following completion of this transaction, Stelrad will be a market leader in six countries and hold a top three position in five more.

“We will continue to develop our mainland European relationships with the long-established regional distribution players in those territories, ensuring we continue to adapt to evolving routes to market.”

The acquisition deal will be funded from existing facilities including temporary use of a £20m accordion option.

DL Radiators’ management team, led by CEO Stefano Valente, will continue to run the business with oversight from Stelrad, and the deal is anticipated to close in the coming weeks, following satisfaction of conditions precedent.