Danfoss takes over heating substation business

Danish industrial giant Danfoss, with yearly business worth 2.2 billion euros, has acquired all the shares of one of the leading heating equipment manufacturers in Romania, Schmidt – Bretten. The sellers of the Schmidt – Bretten business are Mihai Gustiuc (99.9%) and Sabrina Rosca, who held the positions of general manager and executive manager respectively. They will each get about 6 – 7 million euros, according to estimates made by sources from the market. The parties did not wish to reveal the value of the transaction. With this move, Danfoss is attempting to secure the best possible position it can on the heating equipment market in Romania, which is thought to have huge development potential in the next few years. The necessary heating equipment for the whole market is estimated to be worth hundreds of millions of euros, given the advanced degradation state of the infrastructure. Heating equipment manufacturer, Schimdt Bretten, saw turnover grow by 50% last year, to 7.5 million euros. The company operates with a net profit margin of 15%, and employs 50 people.