SST Group reached an agreement with GROUPE ATLANTIC

February 4, 2019

GROUPE ATLANTIC acquires SST Group’s electric underfloor heating and water leakage control systems business. Upon completion of the transaction, SST Group will focus on the global market of heat tracing solutions for oil & gas sector and other industries.

SST Group reached an agreement with GROUPE ATLANTIC

SST Group, a leading global supplier of electric heating cable systems and heat tracing solutions, and Groupe Atlantic (GA), one of the top global HVAC players in Europe, have reached an agreement where GA acquires SST Group’s division for the production and distribution of electric underfloor heating and water leakage control systems.

This transaction shall significantly strengthen GA’s position on the Russian market, broaden the GA’s product portfolio and help achieve synergies in both production and sales. GA will become progressively the owner of the largest Russian producer of electric heating solutions for residential use, including a distribution network covering Russia, CIS and Western Europe. Michael Strupinskiy, the founder and CEO of SST Group, will maintain his role in the meanwhile in order to allow for successful integration of the assets into GROUPE ATLANTIC.

The divestment perfectly fits the strategy of SST Group to strengthen its global position on the heat tracing market for oil & gas and other industries. Today, SST Group possesses all necessary skills, technologies and manufacturing facilities to implement complex projects in any country worldwide. With offices in Germany, UAE and China, SST Group is now actively implementing several international projects together with top global EPC-contractors in oil & gas and petrochemical sectors.

Michael Strupinskiy states: “The interest of GA demonstrates SST’s outstanding technological excellence and expertise. The combination of technological knowhow, growth potential and synergies from cooperation have heightened the desire of GA for this transaction. Moreover, this acquisition allows to expand the export of Russian high-tech products globally.”

Lincoln International, a global international investment bank, acted as a financial adviser to SST Group. Financial and tax due diligence was conducted by Ernst & Young (EY), legal advice was provided by Herbert Smith Freehills.

SST Group has been producing electric underfloor heating in Russia since 1994. SST’s brands which include “Teploluxe”, “Teploluxe Profi”, “National Comfort” and “Warmstad” occupy a dominant position on the Russian market of warm floors. SST Group also produces a wide range of OEM-products for large distributors and DIY-chains.

In 2000, SST Group introduced water leakage control systems under the brand name Neptune. Since its introduction Neptune has earned trust of millions of consumers. Neptune is now the most well-known brand and market leader in this category.

According to experts, this transaction demonstrates there is appetite among leading international companies to make investments into Russian companies with a strong market position and growth potential.

SST Group. Founded in 1991, SST Group is the largest in Russia and one of the largest global providers of residential heating cable solutions and industrial heat tracing systems. SST products and solutions can be found throughout Russia and are exported to around 60 countries worldwide. Located in the Moscow Region, the Group’s production facilities employ 1,500 professionals and produce a full range of electric heating system components.

SST Group is the largest Russian developer and supplier of integrated solutions in the field of electrical heating. More than 20,000 km of pipelines are heated by the Group’s systems. SST Group industrial pipeline and tank heating systems are used at the facilities of Gazprom, LUKOIL, Rosneft, Bashneft, Tatneft, Transneft, ALROSA, Total and many other companies.

GROUPE ATLANTIC. Founded in 1968 in France, GROUPE ATLANTIC is currently a leading global HVAC player. The GROUPE ATLANTIC annual turnover exceeds 1.8 bln Euros and employs over 8,000 employees. The group’s products under the brands Atlantic, Thermor, ACV, Austria-Email, Ygnis are sold in more than 70 countries worldwide.

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