Jan. 2 (Bloomberg) -- Nibe Industrier AB, a Swedish heating-technology company, rose to its highest level in almost two months in Stockholm trading after agreeing to buy Springfield Wire Inc.’s heating-element operations.
The shares rose as much as 2.95 kronor, or 3.3 percent, to 96.7 kronor, the highest price since Nov. 13, and the company’s third consecutive day of gains. The stock traded 2.6 percent higher at 96.25 kronor as at 11:00 a.m. local time, valuing the company at 10.6 billion kronor ($1.64 billion).
Nibe will take over Springfield’s heating-element services, which makes products used in white goods and commercial equipment, in the U.S., Mexico and China, it said in a statement today. The company employs over 1,000 people and generates about $50 million in sales annually, Nibe said.
“We are proceeding with our plans for systematic expansion, this time outside Europe,” Chief Executive Officer Gerteric Lindquist said in the statement. “This is an ideal and complementary acquisition for us and gives us a clear position as one of the market leaders also on the North American market.”
The acquisition will also provide Nibe with an expanding portfolio of products, such as defrosting elements, heating cables and fuel heaters, it said.
To contact the reporter on this story: Toby Alder in Stockholm at email@example.com
To contact the editor responsible for this story: James Ludden at firstname.lastname@example.org