MARKARYD, Sweden, and OKLAHOMA CITY — NIBE Industrier AB of Sweden and LSB Industries Inc., Oklahoma City, announced that they have entered into a stock purchase agreement by which NIBE will acquire 100 percent of the outstanding shares of The Climate Control Group Inc. from LSB for a purchase price of $364 million, on a debt-free/cash-free basis, in cash at completion.
CCG is the holding entity of the operating companies ClimateMaster Inc., International Environmental Corp. (IEC), ClimateCraft Inc., ClimaCool Corp., Koax Corp., and ThermaClime Technologies Inc. These companies, all of which are located in Oklahoma City, are manufacturers of commercial and residential HVAC products, such as water source and geothermal heat pumps, hydronic fan coils, modular geothermal chillers, and large custom air handlers, serving predominantly commercial customers in the United States. Also known as the Climate Control Business, CCG is one of the two divisions of LSB.
“This transaction further elevates NIBE’s position as one of the global players in sustainable energy and indoor climate solutions. Following our successful expansion of our Element and Climate Solutions businesses in the United States in recent years, the acquisition of CCG is a logical step for us to broaden our presence. We are pleased to be able to continue the successful development of CCG that began almost 50 years ago. Together with all employees and the new management team under Rick Aldridge, we look forward to starting a new phase in CCG’s history,” said Gerteric Lindquist, CEO of NIBE.
“We are all very excited to join NIBE as we continue to grow the business and provide our customers with innovative and leading climate control solutions. NIBE represents a highly complementary fit in terms of geography, products, and customers, having little overlap with our operations. We expect this combination to deliver meaningful benefits to our business partners, customers, and staff as we accelerate the realization of the growth and profitability initiatives we set into motion late last year,” said Rick Aldridge, CCG.
“On behalf of the board and management team of LSB, I want to thank the talented employees of CCG, who I am confident will continue to thrive as part of NIBE. This sale represents another successful milestone in the strategic transformation of LSB. We look forward to continuing to grow our Chemical Business and wish NIBE/CCG a very successful future,” said Dan Greenwell, president and CEO of LSB.
With the origins of one of its entities, ClimateMaster, dating back to the late 1950s when it was first founded in Florida, the basis for today’s CCG was established by Jack E. Golsen in Oklahoma City in 1969. Today, CCG designs, manufactures, and markets air conditioning, ventilation, heating, and heat pump products used in commercial, industrial, and residential structures. Products are targeted to new buildings, renovation of existing buildings, and replacement of existing heating and air conditioning systems.
With manufacturing and distribution facilities in Oklahoma City totaling over 1 million square feet, CCG has advanced fabrication equipment, automated quality control systems, and state-of-the-art product design and testing facilities. Products are marketed under its own proprietary trade names and on a private label basis to other leading HVAC manufacturers. CCG’s products are marketed and distributed via a large number of independent manufacturers’ representatives, representing approximately 70 percent of sales, and OEM as well as wholesale distributor channels, representing together the remaining 30 percent of sales. Customers range from engineers, architects, renovation contractors to wholesale distributors and reps as well as HVAC contractors and builders.
In financial year 2015, CCG had reported net sales of $274 million.