Just days after reporting a rise in annual sales to £14.2m Wirral refrigeration firm Brooktherm Refrigeration is sold to an Italian group of companies. Tony McDonough reports

Wirral refrigeration firm Brooktherm Refrigeration has changed hands just days after reporting annual sales of more than £14m.

Northumberland-based Daikin Applied (UK), part of the Italy-based Daikin Applied Europe group of companies, has acquired the Birkenhead business for an undisclosed sum.

Brooktherm, owned by directors Jamie Keating and Daniel Keating, published its annual accounts for the year to March 31, 2023, on November 30. They showed an % increase in revenues of £765,000 to £14.2m.

Pre-tax profits for the 12-month period were just over £1.1m, up from just over £1m the year before. Brooktherm paid dividends of £81,688 to a parent company controlled by the Keatings. Directors’ remuneration totalled £19,752.

Established in 2000, Brooktherm is a leading provider of industrial refrigeration and HVAC services, primarily across the North West. It provides a full scope of turnkey projects and services, including design, supply and installation and bespoke maintenance.

Daikin Applied (UK), which was advised by Grant Thornton’s corporate finance team, says the reason for the acquisition was a desire to strengthen its service and maintenance capability across the UK.

It’s Rome-based parent company specialises in the design and production of chillers, heat pumps, air handling units, compressors and inverter drives.

Brooktherm will maintain its trading name as a member of the Daikin Group. It currently employs around 75 people in Wirral.

Jamie and Daniel Keating will continue to be involved in the management of the company. Jamie Keating said: “The acquisition by Daikin Applied is an important step for Brooktherm Refrigeration.

“Iwill provide the investment needed for significant expansion and growth across the UK. We are excited about this new chapter in our company and are eager to combine our skills and strengths for the benefit of our customers.”

Jim Whittaker, Daniel Crumpton and Bilal Hussain of Grant Thornton UK corporate finance acted as lead advisers to Daikin Applied Europe.

Claudio Capozio, chief executive of Daikin Applied Europe, added: “The Brooktherm acquisition is an important progression that complements and strengthens Daikin’s established applied sales and service organisation within the UK.

“Brooktherm has a wealth of knowledge in service, maintenance and turn-key installation projects, and brings a high level of technical expertise across all HVAC areas.

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“We look forward to this acquisition enhancing our ability to support our customers with the premium service that both Daikin and Brooktherm are renowned for.”

Paul Wigham and Kirsty Adamson of Weightmans provided legal advice. KPMG provided financial and tax due diligence services to Daikin.

The shareholders of Brooktherm were advised by the corporate finance team at Langtons (Simon Mills and Josh Christopher), and legal advice was provided by Jon Davage at Bermans.