Harvia (HARVIA) M&A Presentation summary

Transaction overview

• Agreement signed to acquire ThermaSol, a leading U.S. manufacturer of high-end steam showers and steam rooms, with closing expected in July 2024.

• Purchase price is USD 30.4 million (EUR 27.9 million), financed by a EUR 20 million bullet loan and cash funds.

• ThermaSol brand and operations will continue, with Jennifer Thayer appointed as CEO.

• Expected annual cost synergies of approximately EUR 1.7 million by end of 2027.

ThermaSol business profile

• Family-owned, established in 1958, with headquarters and facilities in Round Rock, Texas.

• 2023 net sales of USD 14.4 million and about 40 employees.

• Product range includes steam generators, shower heads, digital controls, smart shower components, and accessories.

• Also distributes indoor and outdoor saunas and heaters.

Strategic rationale

• Acquisition strengthens presence in the growing steam segment, which represents about 20% of the North American sauna market.

• Supports growth in North America, where market CAGR was ~15% (2019-2023) and steam market expected to grow 5% annually through 2028.

• Expands distribution network and provides a new operational hub in Texas.

• Market consolidation is challenging without an existing presence; ThermaSol is a major player in U.S. residential steam.