Arbonia Finalizes Sale of Climate Division to Midea
Deal News | Mar 03, 2025 | Legal Community Swiss
Swiss building supplier Arbonia has successfully completed the sale of its climate division to Midea Electrics, a subsidiary of the Midea Group. The transaction, valued at EUR 742 million, received unconditional approval from the European Commission and was finalized by January 2025. The climate division, responsible for generating a net income of CHF 576.6 million in 2023 and employing over 3,000 people, specializes in sustainable heat and cold generation products. Midea intends to invest in the division's existing sites and R&D expertise further. Legal advisory for the deal involved significant contributions from Baker McKenzie and Lenz & Staehelin. Baker McKenzie's multi-office team was spearheaded by Zurich partners, while Lenz & Staehelin's M&A partner led their advisory team.
Sectors
- Climate Technology
- Mergers and Acquisitions
- Legal Services
Geography
- Switzerland – Arbonia, the selling company, is based in Switzerland, and part of the legal advisory team from Baker McKenzie was also based there.
- China – Midea Electrics, the buyer, is a subsidiary of the Chinese-based Midea Group, indicating significant geographical relevance.
- Europe – The climate division operates across Europe, and the European Commission's approval was necessary for the transaction completion.
Industry
- Climate Technology – The climate division focuses on sustainable heating, cooling, and air filtration systems, indicating their primary industry is climate technology.
- Mergers and Acquisitions – The article discusses a completed transaction where Midea acquired Arbonia’s climate division, relating it to mergers and acquisitions.
- Legal Services – Both Baker McKenzie and Lenz & Staehelin provided substantial legal advisory services to facilitate this large-scale international transaction.
Financials
- EUR 742 million – The aggregate value of the transaction for the sale of Arbonia's climate division.
- CHF 576.6 million – Net income generated by Arbonia’s climate division in 2023.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Arbonia | Target Company | Company | A Swiss building supplier specializing in products and systems for sustainable heating, cooling, and air filtration. |
| Midea Electrics | Bidding Company | Company | A subsidiary of the Midea Group responsible for this acquisition. |
| Midea Group | Parent Company | Company | The parent company of Midea Electrics, based in China. |
| Baker McKenzie | Legal Advisor - Selling Company | Company | A global law firm advising Arbonia on the sale. |
| Lenz & Staehelin | Legal Advisor - Buying Company | Company | A prominent Swiss law firm representing Midea Electrics in the transaction. |