Italian OEM Epta and Viessmann Refrigeration Solutions – the commercial refrigeration division of German manufacturer Viessmann Group – have signed an agreement to create a joint venture that will be a “leading player” in the Central and Northern European commercial refrigeration market, according to a statement from the two companies.
The new entity, which will be led by Epta, will combine all of Viessmann Refrigeration Solutions’ commercial refrigeration activities in the Baltics, the Czech Republic, Denmark, Finland, Germany, Norway, Poland, Slovakia and Sweden with Epta’s activities in Denmark, Finland, Germany, Norway and Poland.
“This is the beginning of a journey and a long-lasting partnership that will strengthen our position in Central and Northern Europe,” said Marco Nocivelli, President and CEO of Epta. “Our combined expertise in the commercial refrigeration business is unique, and we share similar values as family businesses. This joint venture perfectly represents our strategy and our desire to continue investing in the future of the Group in all the areas in which we operate.”
This news follows the announcement in April that U.S.-based OEM Carrier Global Corporation had acquired Viessmann Climate Solutions, the heat pump division of Viessmann Group.
“This is the beginning of a journey and a long-lasting partnership that will strengthen our position in Central and Northern Europe.”Marco Nocivelli, Epta
By combining Epta’s experience in commercial refrigeration with Viessmann Refrigeration Solutions’ market positioning, the companies have said they are creating a “one-stop shop” of energy-efficient and sustainable commercial refrigeration solutions.
The two companies have also said that the new partnership will extend their leadership in the production, installation and maintenance of cooling systems, based on an “extensive network” of professionals across the continent.
“The joint venture with Epta will create the ideal conditions for long-term profitable growth in a highly competitive market, uniting two market leaders in a future-proof partnership,” said Frank Winters, CEO of Viessmann Refrigeration Solutions. “We combine the best of both worlds: highly energy-efficient state-of-the-art solutions with scale and manufacturing power. The combination will allow unprecedented geographical coverage in Europe, which will benefit both local and international operating customers.”
With both manufacturers demonstrating their commitment to natural refrigerants, the new joint venture is also said to have a focus on sustainable technologies that help accelerate the green transition.
Recent developments include Viessmann Refrigeration Solutions’ ESyCool green system – an integrated propane (R290) and CO2 (R744) HVAC&R system for food retail – Epta’s Extra Transcritical Efficiency (XTE) technology, which incorporates Energy Recovery‘s pressure exchanger device, and Epta’s Extreme Temperature Efficiency (ETE) technology, which improves the efficiency and reliability of transcritical CO2 systems in temperatures up to 50°C (122°F).
“Epta and Viessmann Refrigeration Solutions both strive for a positive impact with solutions that contribute to preserving the planet,” explained Winters. “Together, we co-create the best prospect for our customers, our employees, and for the generations to come.”
“Epta and Viessmann Refrigeration Solutions both strive for a positive impact with solutions that contribute to preserving the planet.”Frank Winters, Viessmann Refrigeration Solutions
Terms of the deal
The new joint venture will have consolidated revenues of more than €400 million (US$449 million) and more than 1,600 employees.
Upon closing the deal, which is expected to take place towards the end of 2023, Epta will fully consolidate Viessmann Refrigeration Solutions into its Group’s financial statements.
Epta will own 70% of the new entity, with Viessmann Refrigeration Solutions owning the remaining 30%.
According to the companies’ statement, Epta’s business activities in Western and Southern Europe, the Middle East, Latin America, the U.S., Asia Pacific will not be affected by the agreement. The transaction also excludes Viessmann Refrigeration Solutions’ clean and cold room solutions activities, its production site in Hof, Germany, and the related sales companies. Viessmann Technologies will remain fully within the Viessmann Group.