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Arbonia with sales plans – Arbonia is planning radical cuts – News

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Arbonia with sales plans – Arbonia is planning radical cuts – News

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Separating the climate division would be a significant cut and a departure from the previous strategy. But Arbonia wants to be number one in the remaining door business.

The construction supplier Arbonia wants to sell one of the two divisions and more than half of its business volume. With the sale of the Climate division, Arbonia would completely say goodbye to products for energy-efficient climate systems. Only the business with interior doors made of wood and glass would remain.

Legend: Buyers from Asia are interested in Arbonia’s Keystone climate products

There is still no concrete information about prospective buyers and offered prices. But Arbonia’s information today leaves little doubt that the sale will be successful. Apparently the idea of ​​a spin-off was brought to the attention of the company. The bidders therefore come from China, Korea and Japan. The Board of Directors received several unsolicited expressions of interest. The negotiations are at an advanced stage with several interested parties.

Door business would be expanded

The remaining door business, however, would be expanded. For this division, Arbonia’s goal is to “expand its leading position as a Central and Eastern European supplier of wooden doors and glass solutions.”

Arbonia: Companies in transition

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With the sale of the division, Arbonia is facing another major turning point. The company was founded in 1874 as a coppersmith. The company has been operating under the name Arbonia AG since 1954, and in 1987 the company went public as Arbonia-Forster Holding AFG. The former main shareholder Edgar Oehler pursued an aggressive expansion course. In the following years, the company acquired numerous companies: in 2004, for example, the Bruno Piatti company, and a year later Miele Küchen. Oehler is no longer involved with Arbonia today. In 2014, Michael Pieper and his investment group became the new main shareholder. He currently holds 23 percent. The company describes the years up to 2020 as years of transformation that continues to this day. This used to include numerous interior design areas, including kitchens and windows. With the sale of the climate division, which bundles products such as heating systems and ventilation, among other things, only one area would remain at Arbonia.

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Arbonia has shrunk continuously over the last few years (see box). Things haven’t been going well operationally lately either. Sales fell by 10 percent to 1.1 billion francs. The bottom line was a loss of 17.2 million francs, after a profit of more than 19 million francs in the previous year.

In 2023, a historic collapse in the construction industry took place, explains Arbonia. Orders have collapsed, particularly in Germany, the largest market. There, customers in the Doors division have reduced their inventory. According to the announcement, the climate division also recorded “historic volume declines”.

Sales plans convince the stock market

However, Arbonia is somewhat optimistic for the current year: the renovation business with heating systems should return to normal soon. In addition, construction activity should become more predictable again with more stable interest rates. This information is essential for potential buyers. However, there is no recovery in sight in new construction, especially in Germany.

The plans have been well received by investors. The shares initially rose significantly. This is despite the fact that the board of directors is suspending the payment of a dividend until an extraordinary general meeting. The sales plans are far more promising for investors than the currently subdued business results.

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