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IK backs merger of Minimax and Viking Group

German-based Minimax and US-based Viking Group, both providers of fire protection and life safety systems, are combining their activities.

The transaction will create a company with over EUR1bn in sales and 6,000 employees.

The combined company will have a fully integrated business model with complementary product and service offerings capable of serving a wide variety of customers in various industries around the globe.

Minimax is renowned for its installation, service, and engineering capabilities and the complete range of fire protection systems, whereas Viking Group specialises in technology, production capabilities and a distribution network involving fire sprinklers and related products.

Klaus Hofmann, chief executive of Minimax, says: “For about the last two years we screened the market for a manufacturer and distributor of fire suppression products. Viking is in all critical aspects far ahead of its competitors. This combination will create a real global player with strong product, service and distribution skills based on Minimax’ focus on installation and service and sophisticated non-water products and Viking Group’s focus on production and distribution of high-quality water sprinklers and sprinkler systems. With the expanded capabilities of both firms, the combined company will be better positioned to take advantage of the opportunities not only in its existing markets, but also across the globe.”

Tom Groos, chairman of Viking Group, says: “There are many complementary aspects of this combination. Minimax is an ideal partner, enabling Viking Group to offer an expanded line of non-water based products to our customers and to effectively service more markets outside of North America. We believe this transaction will be beneficial for our customers, employees and shareholders.”

Detlef Dinsel, managing partner at IK, adds: “We are very happy with the development of Minimax so far having built a much stronger company by extending the service offering and increasing the geographical reach. This combination will enable us to achieve synergies driven by the cross-selling opportunities and further execute on our consolidation strategy in order to increase sales and operating profits.”

The transaction is a combined cash and stock deal where existing shareholders will remain shareholders in the new company, with IK remaining the largest shareholder.

The new company will be headquartered in Bad Oldesloe, Germany.

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