Radiator manufacturer and distributor Stelrad has agreed with De Longhi Industrial to acquire 100% shares of DL Radiators for €28.346million.

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

With a main manufacturing site in Moimacco, near Udine in Italy, DL Radiators employs around 350 people, and its product range includes steel panel, multicolumn steel and aluminium towel warmers.

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It generated €86.9million revenue, €5million normalised EBITDA and had €62.9million gross assets for the year ended December 2021.

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

CEO of Stelrad Trevor Harvey commented: “There is a compelling transaction for Stelrad and allows s 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.”

He added: “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.”

Stelrad will pay a cash consideration of €28.346million based on a debt free, cash free enterprise value of six times normalised EBITDA.

The transaction will be funded from existing facilities, including temporary use of a €20million accordion option, with leverage expected to return below 1.5 times EBITDA by the year end.

It follows on from UK headquartered Stelrad having recently floated on the London Stock Exchange.

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

CEO of DL Radiators Stefano Valente said: “We firmly believe that the success of a company is bult on the commitment of people who are passionate about their work and how can open up to the world and creatively contribute to its improvement.

“We see this as a shared value with Stelrad’s experienced team from the management through to sales and operations and we are excited to work alongside them to grow DL Radiators as a leading heat emitter manufacturer.”