Beijer Ref: The Cold Chain King Building a Global Climate Control Empire

I. Introduction: From Grain to Greenhouse Gases

Picture the harbor of Malmö, Sweden in the autumn of 1866. A young merchant named Gottfried Beijer watches longshoremen unload barrels of grain from Baltic trading ships, calculating margins in his head. He has just founded Firma G Beijer, a trading house that will deal in the essential commodities of nineteenth-century commerce: grain, coal, pig iron. What he cannot possibly imagine is that 159 years later, his namesake company would be valued at nearly $8 billion, operating across 45 countries, and playing a pivotal role in one of the defining technological transitions of the twenty-first century—the phase-out of planet-warming refrigerants.

As of late 2025, Beijer Ref commands a market capitalization of approximately $7.89 billion with trailing twelve-month revenue of $3.7 billion. The numbers are remarkable, but the story behind them is even more compelling. This is a leading global value-added distributor of refrigeration and HVAC products, connecting more than 1,000 suppliers with more than 100,000 customers across four continents.

The central question this deep dive seeks to answer: How did a Swedish commodity trading house, founded in the same year that Alfred Nobel invented dynamite, transform itself into the world's largest refrigeration wholesaler—and position itself at the intersection of climate regulation and technological disruption?

The answer involves a series of strategic pivots spanning three decades: from coal to oil, from diversified trading to focused distribution, from Nordic niche player to pan-European leader, from passive wholesaler to active green technology manufacturer. It's a masterclass in serial acquisition, regulatory positioning, and the art of finding extraordinary returns in seemingly "boring" distribution businesses.

Beijer Ref's history rests on a long tradition of entrepreneurship. Acquisitions, mergers and divestments have characterised the company's development. The common denominator over the years has been that the company has always been involved in trading in some form. What began with grain, coal and coke has developed into a group that focuses entirely on refrigeration and air conditioning—and not just as a middleman, but increasingly as a manufacturer of the green technology solutions that regulators are now mandating worldwide.

The episode themes that will emerge: the art of consolidation in fragmented markets, the power of regulatory tailwinds (particularly F-gas regulations), the unique dynamics of private equity investing in public companies, and why the "boring" distribution business is anything but boring when examined closely.

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II. Origins: The Beijer Trading House (1866-1980s)

In the mid-nineteenth century, Malmö was emerging as one of Sweden's most important commercial centers. The city's strategic position on the Øresund strait made it a natural hub for Baltic trade, and a new class of Swedish merchants was rising to capitalize on the opportunities presented by industrialization.

In 1866, Firma G Beijer was founded in Malmö by the Swedish businessman Gottfried Beijer. In 1877, the company was reorganised into G&L Beijer when Gottfried formed G&L Beijer together with his brother Lorens, and the company mainly traded in grain. The "G&L" stood for the two brothers—Gottfried and Lorens—whose partnership would prove remarkably durable.

The company is founded by the brothers Gottfried and Lorens Beijer, by the company name of G & L Beijer. Initially, the emphasis is on grain but the company gradually moves into coal, pig iron and rolled steel. This diversification pattern would become a hallmark of the Beijer approach: identify essential commodities, build logistics expertise, cultivate supplier relationships, and pivot when market conditions shifted.

The transition from grain to industrial materials reflected the broader transformation of the Swedish economy. As the country industrialized, demand for energy and raw materials exploded. G&L Beijer positioned itself as an essential intermediary, bringing coal and iron to factories and foundries across southern Sweden.

In 1908, G&L Beijer was reorganised into a limited company. The corporate restructuring reflected the growing scale and complexity of operations. During the 1930s, the company's shipments of coal and coke reached their peak, and new departments for building materials, export of machinery and timber trade were started due to the war in the 1940s. In 1939, Beijer's operations expanded to include coal, pig iron and rolled steel.

The interwar period represented the company's heyday as a traditional trading house. Coal shipments fueled Swedish industry's continued expansion, and the company's logistics network stretched across Scandinavia. But this very success contained the seeds of future disruption.

In 1954, oil replaced coal as the main commodity for G&L Beijer, and in 1966, the company celebrated its 100th anniversary. The shift from coal to oil was the first major commodity pivot in the company's history—a preview of the more dramatic transformations to come.

By the 1980s, however, the trading model that had served G&L Beijer for over a century was showing its age. Commodity trading had become increasingly competitive, margins were compressing, and the company lacked clear differentiation. The century-old firm had survived two world wars and multiple commodity transitions, but its next challenge would prove the most consequential: finding an entirely new purpose in a post-industrial economy.

The DNA That Mattered: What made Beijer valuable wasn't what it traded, but how it traded. The logistics expertise, supplier relationships, and local market knowledge accumulated over more than a century would prove surprisingly transferable. When the company eventually pivoted to refrigeration distribution, these capabilities translated directly: understanding complex supply chains, managing inventory across multiple locations, providing technical support to customers, and maintaining strong relationships with both suppliers and end users. The trading house DNA lived on, even as the commodities changed completely.

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III. The Transformation Era: From Trading House to Refrigeration Focus (1992-2004)

The transformation of G&L Beijer from a moribund commodity trader to Europe's leading refrigeration wholesaler reads like a corporate turnaround case study—complete with family drama, strategic visionaries, and a series of perfectly timed acquisitions.

The Skrinet Takeover & Vision

Then we skip forward to 1992, when control of the ancient G&L Beijer was acquired by a listed investment company called Skrinet, with the backing of original Beijer and Hain family members. What the official history glosses over is the human drama involved. The official version omits to mention that this change of control played out as a sensational intra-family feud over a number of years. The saga attracted a lot of attention in the Swedish press, amid conflict between the instigators, John and Jan Hain, and large parts of the family.

Skrinet AB acquired 62 per cent of the shares in G&L Beijer AB, which marked the beginning of a new era. Two years later, G&L Beijer became wholly owned by Skrinet.

The corporate restructuring brought new leadership with radically different ambitions. The Beijer Ref we see today is the outcome of thirty years of focused efforts by its effective founders and joint controlling shareholders, Joen Magnusson and Per Bertland. They must be modest individuals.

Upon seizing control in 1993, Jan Hain inherited from Skrinet two talented managers called Joen Magnusson and Per Bertland as CEO and CFO. They realized that large and sweeping changes had to be made, and quickly. All of the legacy commodity trading units were sold. Distribution of refrigeration equipment became a core business, led by Bertland as divisional MD. From the 1990s and onwards they made a series of acquisitions in this area.

The decision to focus on refrigeration distribution was neither obvious nor inevitable. The business was fragmented, unglamorous, and offered none of the scale that commodity trading once had. But Magnusson and Bertland saw something others missed: a consolidation opportunity in a market with structural tailwinds and defensible local advantages.

In 2002, Jan Hain sold a 31% controlling stake in the firm to Magnusson and Bertland. This management buyout cemented Beijer Ref's status as an owner-operated company for the next twenty years. Magnusson continued as CEO until 2013. Bertland then picked up the baton and served as CEO from 2013 until 2021.

The alignment of ownership and management proved critical. Unlike public company executives focused on quarterly results, Magnusson and Bertland could think in decades, building a business designed to compound over the long term.

The Danfoss/Elsmark Deal (2004) - First Major Inflection Point

While acquisitions had made the Beijer Group the leading refrigeration wholesaler in the Nordic countries in the lead-up to the 2000 millennium, it was formation of Beijer Ref in 2001 and the purchase of the Danfoss-owned Elsmark Group in 2004 which signalled the company's serious intent.

Today, 13 July 2004, G & L Beijer has signed a final purchase agreement with the Danish company, Danfoss, for the acquisition of Elsmark. The acquired operation will be included in business area Beijer Refrigeration. The acquisition comprises six companies with operations in eight European countries. The companies report total sales of SEK 900M and have around 380 employees.

One of the main prizes in the Elsmark purchase was that of Dean & Wood, one of the "big three" UK wholesalers, but it also included the not insignificant activities of Swiss wholesaler Werner Kuster AG, Dutch wholesaler Coolmark and the eastern European business Equinoxe of Hungary.

Including the acquisition, the G & L Beijer Group will report sales of approximately SEK 2.3 billion on an annual basis and have around 1,000 employees.

This doubled refrigeration sales and extended the footprint from the Nordics and Baltics into the UK, Netherlands and Switzerland. Beijer proclaimed itself the European #1 with c.10% market share as a result.

Acquisition of Danish refrigeration Group Elsmark. Beijer goes from being the largest in the Nordics to largest in Europe.

The Elsmark deal established the acquisition template that Beijer would follow for the next two decades: buy well-run regional distributors from strategic sellers (in this case, Danfoss, which wanted to exit distribution to focus on manufacturing), integrate them while preserving local brands and relationships, extract synergies in purchasing and logistics, and use the enhanced scale to pursue even larger deals.

So What for Investors: The 1992-2004 period established the foundation for everything that followed. Two critical elements emerged: (1) owner-operators with aligned incentives and multi-decade time horizons, and (2) a repeatable acquisition playbook in a fragmented market. Companies with both elements can compound value at extraordinary rates for extended periods—precisely what Beijer Ref went on to demonstrate.

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IV. The Carrier Deal: Becoming a True European Giant (2008-2012)

If the Elsmark acquisition announced Beijer Ref's serious ambitions, the Carrier deal announced its arrival as a true European powerhouse. The transaction would more than double the company's size and, crucially, plant the seeds of a relationship that would profoundly shape Beijer's future.

Second Major Inflection Point - The Carrier Acquisition

The acquisition of Carrier's European and African refrigeration business was the group's largest deal to date.

In September 2008 Beijer agreed to buy Carrier's refrigeration wholesale operations in Europe and South Africa, following several years of talks. The all-share deal completed in January 2009, giving Carrier (then a United Technologies subsidiary) a 41.5% capital stake and a 33.3% voting stake in the combined group. The deal was valued at SEK1.06bn, worth $132m at the time – a reminder of how tiny Beijer Ref still was at the time compared to today's $7bn market cap.

As previously announced, G & L Beijer AB (publ) entered into a final agreement for the acquisition of Carrier Corporation's refrigeration wholesale operations in Europe and South Africa ("Carrier ARW") on 13 January 2009.

The structure was elegant: Carrier received equity rather than cash, aligning the manufacturing giant's interests with Beijer Ref's long-term success. "The acquisition of Carrier ARW is a milestone and the largest transaction in G & L Beijer's history. We will now put all our energy into co-ordinating and integrating the operations in order to take advantage of synergy gains. We look forward to an exciting collaboration with our new and major shareholder, Carrier, which can contribute to the Groups continued expansion," says Joen Magnusson, Managing Director of G & L Beijer.

Over the years the business was gradually expanded with further acquisitions in the Nordic countries, Switzerland and the Netherlands, as well as the purchase of Carrier's air conditioning and refrigeration distribution operations in Europe and South Africa. This included leading French wholesaler GFF and its operations in Belgium and Luxembourg, Spain, Italy, the Netherlands, Switzerland and Poland.

Carrier was another transformative deal for Beijer. The combined group was twice the size and now truly pan-European, with a dominant c.20% market share and an expanded product portfolio. France, the Netherlands, South Africa, the UK and Switzerland were the top five countries in 2010, contributing 62% of total sales. None of these countries is Nordic! This set Beijer Ref apart from its Scandinavian trading company peers such as Addtech and Indutrade, which to this day continue to depend on familiar Nordic markets.

The strategic rationale was compelling from both sides. Carrier wanted to focus on manufacturing—its core competency—while monetizing distribution assets that required local market expertise to operate effectively. Beijer Ref gained scale, geographic reach, product portfolio expansion, and a major shareholder with deep industry relationships and technical knowledge.

Beijer Ref's original acquisition of Carrier's refrigeration wholesale operations in Europe and South Africa in 2009 gave Carrier 41.5% of the capital in the company and 33.3% of the votes.

The Divestiture & Pure-Play Strategy

With the Carrier acquisition complete, management moved decisively to sharpen Beijer's focus.

Beijer Tech was divested and G&L Beijer became a distinct distributor of refrigeration and HVAC.

The company was formerly known as G & L Beijer AB (publ) and changed its name to Beijer Ref AB (publ) in May 2014.

The name change was symbolic but meaningful: the company was no longer a diversified trading house with refrigeration operations; it was a pure-play refrigeration and HVAC distributor with a century and a half of trading heritage. The sharpened identity made the company easier for investors to understand and value, while signaling management's commitment to a focused strategy.

The Carrier Relationship: What neither party fully anticipated was how long Carrier would remain a shareholder—or how valuable that stake would eventually become. Carrier's patience through multiple market cycles allowed Beijer Ref to compound without the distraction of activist pressure. When Carrier finally sold its stake in 2020, the proceeds of approximately $1.1 billion dwarfed the original deal value, representing a spectacular return for what was effectively a take-private of distribution assets they no longer wanted to operate.

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V. The Green Tech Pivot & OEM Strategy (2013-2019)

While consolidation continued through the 2010s, a more profound transformation was underway. Beijer Ref was positioning itself not merely as a distributor of refrigeration equipment, but as a manufacturer and advocate of green technology solutions—betting that regulatory pressure would reshape the entire industry.

Third Major Inflection Point - F-Gas Regulations

The European Union's F-gas Regulation, adopted in 2014 and taking effect in 2015, represented a sea change for the refrigeration industry. Fluorinated gases (F-gases), particularly hydrofluorocarbons (HFCs), had been the dominant refrigerants for decades—but their contribution to global warming was substantial. Some HFCs have global warming potential thousands of times greater than carbon dioxide.

The regulation means that F-gases, which are the most important refrigerant for industrial and commercial refrigeration, will be reduced by 80 percent by 2030. The current production capacity for SCM Frigo therefore needs to be expanded.

The EU F-Gas Regulation from 2015 means a phase-out of ozone-depleting fluorinated hydrocarbons (HFCs) by 2030. The Kigali Amendment to the Montreal Protocol from 2016 is driving this phase-out on other continents as well, including the United States, which adopted the amendment in 2022.

The regulatory trajectory was clear: the industry would need to transition from HFC-based systems to alternatives using natural refrigerants like carbon dioxide (CO2), ammonia, and propane. For Beijer Ref, this represented both a threat and an opportunity. Existing installed base would need replacement. Customers would require technical expertise to navigate the transition. And manufacturers capable of producing compliant equipment would gain share.

Building Proprietary Green Technology

Rather than simply wait for manufacturers to adapt, Beijer Ref moved to build its own green technology capabilities.

An significant agreement with Toshiba gave Beijer Ref exclusive rights to distribute their air conditioning and heating products in 11 European countries. In the same year, SCM Frigo was acquired, which was a step towards the development of environmentally friendly cooling units.

The Swedish refrigeration group, Beijer Ref AB, is acquiring the remaining 49 per cent of the shares in the Italian SCM Frigo Group, a leading manufacturer in Europe of refrigeration units based on environment-friendly carbon dioxide technology. SCM Frigo, established in 1979, exports around 85 per cent of its products and has a strong market position within the rapidly expanding segment for environment-friendly refrigeration technology. The company reports sales of approximately SEK 240M and has 90 employees. "Beijer Ref acquired 51 per cent of SCM Frigo in 2011 as it is one of the European companies which most successfully drives the transition to environment-friendly solutions within the refrigeration industry.

In order to meet the market demand for refrigeration based on natural refrigerants, the production capacity of the subsidiary SCM Frigo is being expanded with a new plant. SCM Frigo S.p.a, based outside Padua, Italy, is one of Beijer Ref's fastest growing subsidiaries.

The subsidiary SCM Frigo specialises in the development of refrigeration units and acts as a knowledge centre for Beijer Ref's factories in Sweden, the Netherlands, Thailand, Australia, China and South Africa. Beijer Ref is the only refrigeration wholesaler in the world with global manufacturing of green refrigeration technology.

This last point deserves emphasis. Beijer Ref is the only refrigeration wholesaler in the world with global manufacturing of green refrigeration technology. The company had evolved from pure distribution to vertical integration in the highest-growth segment of its market.

Swedish wholesaler and manufacturer Beijer Ref is expanding its Italian SCM Frigo subsidiary to keep up with a growing demand for natural refrigeration systems, CO2-based in particular. According to Simon Karlin, Beijer Ref AB COO, this will double the company's production capacity. "Due to the European F-gas regulation, we expect the market for environmentally friendly refrigeration systems to continue to be strong over the next five to ten years," said Beijer Ref CEO Per Bertland. "The transition to green technology has just begun and so far, an estimated 15-20% of retailers in Europe have converted to chillers that are adapted to the new regulation. With the new plant, we ensure that Beijer Ref can meet the increased demand of the market."

Grocery stores were among the first to switch technologies. Today, around 30% of Europe's more than 250 000 grocery stores use environmentally friendly refrigeration systems, and the transition is rapidly spreading to logistics centres, process industries, petrol stations and the HORECA segment. District heating plants and industries are also switching to environmentally friendly heat pumps, and demand is expected to increase significantly in the coming years.

Asia-Pacific Expansion

While building green technology capabilities, Beijer Ref continued geographic expansion beyond Europe.

Beijer Ref acquired the Australian refrigeration wholesaler Patton and established itself in new markets such as New Zealand, Australia and India.

Beijer Ref strengthened its position in Asia Pacific through the acquisition of Realcold, and in Europe through the acquisition of HRP, one of the UK's largest refrigeration wholesalers.

Beijer Ref acquired the Australian refrigeration wholesaler Heatcraft, which doubled the Group's sales in the Asia-Pacific region.

The Asia-Pacific expansion followed the proven playbook: acquire established local players, preserve their brands and relationships, integrate purchasing and back-office functions, and use the expanded footprint to attract additional acquisition targets.

So What for Investors: The 2013-2019 period transformed Beijer Ref from a pure distributor to a differentiated player with proprietary technology. The F-gas regulations created a once-in-a-generation replacement cycle—essentially mandating the obsolescence of existing equipment across Europe. Companies positioned to benefit from such regulatory transitions can enjoy years of above-market growth with limited competitive pressure, as incumbents with legacy technology struggle to adapt.

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VI. The EQT Era: Private Equity Meets Public Markets (2020-Present)

December 2020 brought a dramatic change to Beijer Ref's ownership structure—one that would accelerate every element of the company's strategy while introducing an unusual hybrid model: private equity ownership of a publicly traded company.

Fourth Major Inflection Point - EQT Investment (December 2020)

The US manufacturer says it has signed a definitive agreement to sell its remaining A and B shares in Beijer Ref to a fund managed by global investment firm EQT. As a result, EQT will replace Carrier as Beijer Ref's principal shareholder with 29.6% of the capital and 26.4% of the votes.

EQT Private Equity acquires 29.6 percent of the shares and 26.4 percent of the votes in Beijer Ref, a world-leading wholesaler of cooling technology and air conditioning, and thereby becomes the largest shareholder.

The price: approximately $1.1 billion. When EQT discovered that one of Beijer's largest shareholders wanted to make a complete exit, the private equity firm snapped up the 29.6 percent position for around $1.1bn, buying the shares at a discount to the then-market price.

Albert Gustafsson, Partner at EQT Partners, said: "We have followed Beijer Ref for many years and have been very impressed by their consistently strong performance. Beijer Ref represents a truly thematic investment for us. We are excited by the opportunity to now work together with the Company, the Board and its management team, and we have a strong conviction around Beijer Ref's ability to drive change in its industry. In particular, we look forward to supporting Beijer Ref in its efforts to promote the phase-out of F-gas dependent solutions in favor of sustainable greentech technologies".

The Unique PE-Public Company Dynamic

While EQT funds typically buy majority stakes, the cost of buying a controlling stake in Beijer would have exceeded the fund's investment constraints for a single stake. This created an unusual dynamic: a private equity firm acting as active owner in a public company, needing to coordinate with other shareholders rather than dictate unilaterally.

"A layman might say HVAC distribution sounds boring, but it is one of the most attractive distribution markets that I have ever come across," says Juho Frilander, an EQT Managing Director.

Beijer specifically had the advantage of being the sole major distributor in Europe, in an industry primarily served by small, local players. Founded in 1866, it had enjoyed decades of impressive growth – between 2015 and 2020, for example, revenue had increased by 77 percent, and earnings before interest and tax (EBIT) by 83 percent.

The investment thesis aligned perfectly with EQT's capabilities: a consolidation opportunity in a fragmented market, regulatory tailwinds creating demand growth, and a platform company capable of executing serial acquisitions. Beijer picked up the pace of acquisitions, inking more than 35 bolt-ons since 2021 – matching the number of such deals done over the previous two decades – including the 2023 purchase of Heritage, marking the group's entry into the US market.

Accelerated Green Investment

"Beijer was already going in the right direction, thinking about green positioning like we do, as a big market driver. We doubled down on that and invested massively to boost production.

In 2021, Beijer Ref acquired the Danish refrigeration technology company Fenagy, which has developed a new range of industrial heat pumps and refrigeration systems based on CO2.

The technology is used, among other things, by district heating plants that convert electricity using heat pumps. Beijer Ref is leading the development of large industrial heat pumps and works closely with suppliers to ensure the availability of the right size compressors. Fenagy's technology has created significant demand due to its cost effectiveness and environmental benefits. By integrating Fenagy into Beijer Ref's structure for product development, purchasing and customer support, further benefits are achieved. In 2023, sales of Fenagy's technology increased by more than 100 per cent, and demand is expected to grow by more than 30 per cent annually.

By increasing the production and distribution of these solutions, Beijer Ref is helping its customers to reduce their climate impact. According to calculations by ATMOsphere, an independent greenhouse gas emissions reduction company, SCM Frigo's and Fenagy's sales in 2023 helped avoid 4.7 million tonnes of carbon dioxide equivalent (CO2e), equivalent to taking 1 million cars off the road.

Financial Transformation Under EQT

After more than four years of EQT's active ownership, Beijer Ref has accelerated both top and bottom-line growth. Net sales increased by 111 percent between the 2021 and 2024 fiscal years to 35.6bn SEK ($3.3bn), while EBIT increased 162 percent to 3.6bn SEK ($338m) as margins improved.

"The speed of doing things in the public markets is a little slower compared to private equity, but what's remarkable about Beijer Ref is how we've been able to do everything in our base case and more – the US expansion was an upside case," Frilander says. "It is testament that in the right situations you can do quite amazing things for value creation despite a minority role in a public setting."

Leadership Transition

The EQT investment coincided with a planned leadership transition.

Christopher Norbye is currently Executive Vice President and Head of Entrance Systems Division at Assa Abloy. Christopher is expected to start in his new position during the fourth quarter.

Prior to joining Beijer Ref, Christopher Norbye served as Executive Vice President and Head of Entrance Systems Division at Assa Abloy. Christopher is a commercial and business-oriented leader, with a strong track record. He has extensive experience from senior positions and a great understanding of global and acquisition-driven companies.

Christopher Norbye is a highly commercial and business-oriented leader with a strong track record. He is the CEO of Beijer Ref since 2021 a Swedish listed company focused in the Refrigeration and HVAC segment.

The selection of Norbye reflected EQT's influence: an executive with experience at Assa Abloy, another serial acquirer with global ambitions, and Sandvik—both representing excellent pedigree for Swedish industrials pursuing international expansion through disciplined M&A.

So What for Investors: The EQT investment accelerated every element of Beijer Ref's strategy without changing its fundamental character. The combination of private equity resources and public market discipline created a potent structure: patient capital willing to fund transformational acquisitions, combined with transparency requirements that kept management accountable. The 111% sales growth and 162% EBIT growth over four years demonstrate what this hybrid model can achieve.

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VII. The American Dream: Heritage Distribution Acquisition (2023)

The Heritage Distribution acquisition represented Beijer Ref's most ambitious move yet—entry into the world's largest HVAC distribution market. The deal would test whether the company's European playbook could work across the Atlantic.

Fifth Major Inflection Point - US Entry

Beijer Ref AB (publ) ("Beijer Ref") has signed a binding agreement to acquire Heritage Distribution Holdings ("Heritage Distribution") for a purchase price of USD 1,275 million (USD 1,175 million excluding net present value of tax benefits) on a cash and debt free basis (approximately SEK 13,000 million).

The acquisition will be Beijer Ref's entry into the North American market and will establish the company as a leading HVACR distributor in the U.S. South/South East region, one of the most attractive regions for HVACR in North America. Heritage Distribution originated from mergers of three regional leaders, each with longstanding track-records and strong brands – Wittichen Supply (founded in 1914), Benoist Brother Supply (founded in 1928) and Ed's Supply (founded in 1957).

The timing was strategic. Beijer Ref CEO Christopher Norbye said, "The acquisition of Heritage Distribution constitutes an important strategic step for Beijer Ref. The North American market is currently undergoing a shift towards electrification and energy efficiency, accelerated by regulatory changes. Also, the growing recognition of indoor air quality and climate change impacts has increased the demand for environmentally friendly and innovative HVAC technologies, which creates a great opportunity for our combined product offering.

Heritage Distribution Holdings ("HDH" or "the Company"), a leading multi-regional HVAC/R parts and equipment distribution platform serving the Southeastern and Midwestern United States, has been acquired by Beijer Ref (OM: BEIJ B), a world-leading distributor and wholesaler of cooling technology and HVAC products, headquartered in Malmö, Sweden. HDH provides Beijer Ref with a North American platform from which they can continue to drive consolidation. The transaction closed on January 20, 2023.

The Strategic Logic

Despite international expansion, Beijer Ref wasn't yet in the US, the world's largest HVAC distribution market.

HDH provides Beijer Ref with a North American platform from which they can continue to drive consolidation. The transaction closed on January 20, 2023.

Heritage Distribution Holdings and Beijer Ref share the same decentralized business model where entrepreneurial thinking and freedom with responsibility permeating the organization.

The cultural alignment was critical. Both companies operated with decentralized structures that preserved local entrepreneurship while extracting group-wide synergies. This similarity reduced integration risk and made Heritage's management more willing to join forces.

Financing Innovation

The acquisition is fully financed through a bridge facility provided by Handelsbanken and Nordea. Beijer Ref intends to repay the bridge facility with proceeds from a fully underwritten rights issue of class B shares amounting to approximately SEK 14 billion with preferential rights for existing shareholders in Beijer Ref, intended to be launched during the first half of 2023. EQT has undertaken to subscribe for its pro rata share of the rights issue, corresponding to 29.8% of the shares.

"It was a transformative acquisition, and EQT was instrumental in getting it done," Frilander says. EQT supported due diligence and gave confidence to the board and management to launch the $1.3bn rights issue that funded the purchase of Heritage – equal to approximately a quarter of Beijer's share capital, and at the time represented the largest rights issue in Sweden for more than 10 years. "We brought a lot of credibility in the capital markets, which rewarded us for doing it, rather than sending the share price down."

Challenges in the US Market

The US HVAC distribution market presents unique challenges compared to Europe. Market share data is patchy, but at best Rheem is ranked as the #4 player in the US market, lagging well behind Carrier, Trane and Lennox in sales and brand image. Some experts think Rheem will struggle to roll out new products compliant with the latest F-gas regulations in a timely manner, compared to the leaders. Beijer did complain in 2023 conference calls about lack of availability of the right AC product.

Compared to Watsco, Beijer Ref lacks OEM approval from any supplier other than Rheem. Access to top-tier suppliers may be far more difficult for Beijer to gain in the US than has been the case elsewhere.

The North American market remains challenging, with a focus on transitioning to new A2L refrigerants, which could impact growth.

The US market structure differs fundamentally from Europe. Major manufacturers like Carrier and Trane maintain tighter control over distribution, often through joint ventures (as with Watsco) rather than arm's-length relationships. Beijer Ref's European model—representing multiple manufacturers while maintaining independence—may face structural barriers in America.

Continued US Expansion

Despite challenges, Beijer Ref has continued building its US platform.

Swedish wholesaler Beijer Ref has acquired two U.S. HVACR distributors: Key Refrigeration Supply and Dennis Supply Company. The companies have combined annual turnover of approximately $84 million USD. Key Refrigeration Supply, founded in 1999 and headquartered in North Kansas City, MO, operates six branches in Kansas and Missouri. This acquisition will strengthen Beijer Ref's position in existing markets. Dennis Supply Company was founded in 1935 and is headquartered in Sioux City, IA. With 13 branches across Iowa, South Dakota, Nebraska and Wyoming, the acquisition supports Beijer Ref's expansion into adjacent states. The companies will continue to operate under their respective brands.

So What for Investors: The Heritage acquisition represents both Beijer Ref's greatest opportunity and its most significant risk. Success in the US could double the company's addressable market and provide a platform for decades of consolidation. Failure could absorb management attention, dilute returns, and prove that the European model doesn't translate across the Atlantic. The next several years of US performance will be the critical variable in Beijer Ref's investment case.

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VIII. The Business Model Deep Dive

Understanding what Beijer Ref actually does—and why it's harder to replicate than it appears—requires examining the mechanics of HVAC and refrigeration distribution.

What Beijer Actually Does

Beijer Ref operates in three business segments: Refrigeration, HVAC, and OEM. The Refrigeration segment supplies systems for commercial environments, such as shops and hotels, as well as industrial applications.

Beijer Ref is a leading global value-added distributor of refrigeration and HVAC products, and also operates a greentech OEM business. It is present in 36 countries where it connects more than 1,000 suppliers with more than 100,000 customers. The company offers unique technical expertise, reliability, and proximity, as well as a comprehensive product portfolio with exclusive distribution agreements for leading OEMs.

With wholly owned companies in Europe, North America, Africa and Asia and Oceania, Beijer Ref is the world's largest global refrigeration wholesaler. Customers and market Commercial refrigeration, industrial refrigeration, and comfort cooling (HVAC) are Beijer Ref's main sales markets. As an example of our place in the market, an end users requirement for refrigeration in their restaurant or grocery store, or air conditioning in their home would go through an installer. This installer would be our customer, purchasing their cooling equipment and ancillaries from Beijer Ref. Distribution With logistics centres at the heart of every market, Beijer Ref distributes products mainly through its own branch network of 500+ branches.

The Hourglass Market Structure

The HVAC and refrigeration value chain has a distinctive hourglass shape. At one end: large numbers of original equipment manufacturers (OEMs) producing compressors, condensers, evaporators, controls, and complete systems. At the other end: tens of thousands of fragmented local installers and service companies. In the middle: distributors like Beijer Ref.

Beijer represents a number of different manufacturers in each country, such as Toshiba or Mitsubishi air conditoners, Danfoss components, Bitzer and Tecumseh compressors and condensing units, Lu-ve evaporators, Carel controls and so on. It is typically not economically feasible for any of these manufacturers to maintain their own branch network on a standalone basis. This explains from first principles why Beijer Ref and its HVAC wholesaler peers can prosper as middlemen, aggregating demand across many different suppliers.

Ongoing servicing creates a critical advantage. HVAC and refrigeration equipment fails unexpectedly—often in mission-critical applications where downtime means spoiled inventory, uncomfortable customers, or lost productivity. Distributors with local inventory and technical expertise can support engineers when repairing units, often within hours rather than days.

The Value-Add Model

The company offers unique technical expertise, reliability, and proximity, as well as a comprehensive product portfolio with exclusive distribution agreements for leading OEMs.

The Beijer Ref Group is focused on trading and distribution operations within refrigeration products, air conditioning and heat pumps. The Group creates added value by contributing technical competence to the products, accounting for knowledge and experience about the market, and by providing efficient logistics and warehousing.

Beijer Ref has a decentralised and entrepreneurial business model. Senior executives in the subsidiaries drive business development with freedom under responsibility for financial and non-financial goals. The head office acts as an important support to the subsidiaries that work close to the market.

With approximately 6,000 employees, of which around 20 are in central functions, Beijer Ref provides customers globally with products within commercial and industrial refrigeration, heating and air conditioning. Through 150+ subsidiaries in Europe, North America, Africa, Asia and Oceania, sales, purchasing, logistics and distribution are handled. The majority of the business is focused on wholesale and distribution activities, with complementary own production (OEM).

The ratio is striking: approximately 6,000 employees in subsidiaries, with only around 20 in central functions. This extreme decentralization preserves local responsiveness while the center provides support in purchasing, IT, and strategic direction.

The Acquisition Machine

Beijer Ref is a global Group with 150+ subsidiaries in Europe, North America, Africa, Asia and Oceania. The Group's strategy is to grow through acquisitions and organic growth while broadening its product range. By consolidating the market, Beijer Ref can negotiate competitive Group-wide purchasing agreements from leading suppliers and brands. At the same time, it unlocks synergies in areas such as digitisation, logistics and the development of green technology.

SWEDEN: Refrigeration wholesaler Beijer Ref is said to have used AI to identify over 1,000 new potential acquisition targets. With some 70 subsidiaries in Europe, Asia Pacific and Africa with sales across 42 countries, Beijer Ref can claim to be the world's largest global wholesaler of of commercial refrigeration, industrial refrigeration, air conditioning and heating. It is revealed that the company has been working with Stockholm-based AI company Grasp to find relevant acquisition targets across the globe. So far, 40 million companies have been analysed in 22 countries, generating over 1,000 new potential acquisition targets for Beijer Ref. The AI solution also provides Beijer Ref with non-reported data points needed to prioritise amongst the targets – these include products sold, brands carried, and proxies for revenue and growth figures.

The use of AI for acquisition target identification illustrates how Beijer Ref thinks systematically about consolidation. With over 1,000 potential targets identified, the M&A pipeline extends for years, providing visibility into future growth.

So What for Investors: The business model creates multiple competitive advantages. Local expertise and inventory create switching costs for customers. Purchasing scale creates cost advantages versus smaller competitors. The decentralized structure preserves entrepreneurship while the center extracts synergies. And the OEM capabilities provide differentiation that pure distributors cannot match. These advantages compound over time as scale begets better purchasing terms, better purchasing terms enable competitive pricing, competitive pricing wins customers, and customers enable further scale.

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IX. Financial Profile & Performance

The numbers tell a story of disciplined execution over decades, with acceleration under EQT's active ownership.

Historical Performance

Founded in 1866, it had enjoyed decades of impressive growth – between 2015 and 2020, for example, revenue had increased by 77 percent, and earnings before interest and tax (EBIT) by 83 percent.

After more than four years of EQT's active ownership, Beijer Ref has accelerated both top and bottom-line growth. Net sales increased by 111 percent between the 2021 and 2024 fiscal years to 35.6bn SEK ($3.3bn), while EBIT increased 162 percent to 3.6bn SEK ($338m) as margins improved.

Recent Performance - Q3 2025

Beijer Ref AB (ST:BEIJB) on Friday reported third-quarter results in line with expectations, with net sales of SEK 9,726 million, up 2.4% year-over-year and 5.0% organically. The company achieved a record-high Q3 EBITA margin of 11.7%, compared to 11.4% in the same period last year. EBITA reached SEK 1,133 million, increasing 4.5% from the previous year and coming in 1% above consensus estimates. All business segments posted organic growth, with HVAC up 6%, OEM up 4%, and Commercial & Industrial Refrigeration up 4%.

Geographically, EMEA grew 5.2% organically to SEK 5,922 million, North America increased 6.3% organically to SEK 2,362 million, and APAC rose 3.2% organically to SEK 1,460 million. EBITA margins remained stable in EMEA at 12.0%, while improving in APAC to 9.4% (up 1.1 percentage points) and in North America to 14.1% (up 0.4 percentage points).

"We have just completed a strong quarter with a good organic growth of 5 per cent, continued improvement in EBITA margin and strong operating cash flow. Sales increased by 8 per cent and EBITA by 11 per cent, excluding currency effects.

Cash flow remains robust, with a significant improvement in inventory management contributing to a strong balance sheet. EPS grew by 11% despite currency headwinds, showcasing strong financial performance.

Strategic Initiatives

Beijer Ref will in the fourth quarter of 2025 launch a strategic consolidation program, with annual cost savings of approximately SEK 100 million, to accelerate efficiency and improve customer service levels in selected markets. The one-off related costs are projected to amount to approximately SEK 150 million and will be recognized in the fourth quarter.

During the quarter, we strengthened our financial flexibility by establishing a SEK 7 billion MTN program and issuing a SEK 1.5 billion bond. After the end of the quarter, we signed an agreement to acquire Airwave, a market-leading HVAC distributor in the Baltics that offers solutions for both residential and commercial properties, with an annual turnover of approximately SEK 600 million.

Key Metrics for Investors

For tracking Beijer Ref's ongoing performance, two metrics matter most:

1. Organic Sales Growth: This measures the health of the core business independent of acquisitions. The 5% organic growth in Q3 2025 demonstrates continued market share gains and healthy underlying demand. Watch for this metric to remain in the 4-7% range in normal conditions, with potential upside as F-gas transition accelerates.

2. EBITA Margin Progression: At 11.7% in Q3 2025 (record high for a third quarter), margins reflect both pricing power and operational efficiency. The trajectory matters: consistent margin expansion indicates successful integration of acquisitions and purchasing leverage. Margin compression would signal competitive pressure or integration challenges.

Financial Flexibility

The company maintains strong financial flexibility to fund continued acquisitions. The establishment of a SEK 7 billion MTN program and recent bond issuance provide runway for additional deals without dilutive equity raises.

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X. Competitive Analysis & Strategic Framework

Understanding Beijer Ref's competitive position requires examining both the industry structure and the company's specific advantages within it.

Industry Structure - Porter's Five Forces

Threat of New Entrants: LOW Barriers to entry are substantial. Building a network of 500+ branches with local inventory and technical expertise requires decades of investment. Exclusive distribution agreements with major OEMs cannot be replicated quickly. Customer relationships are sticky—installers develop loyalty to distributors who consistently have parts in stock and provide technical support.

Bargaining Power of Suppliers: MODERATE OEMs need distributors to reach fragmented installer markets, but major manufacturers like Carrier, Trane, and Daikin have alternatives. The exclusive distribution agreements that Beijer Ref has secured in various markets reflect the current balance of power, but manufacturer consolidation or direct-to-market strategies could shift this over time.

Bargaining Power of Buyers: LOW Individual installers have limited bargaining power against a distributor with comprehensive product range and local inventory. Switching costs are real: learning new systems, establishing credit accounts, and risking service gaps create inertia. However, large commercial customers have more leverage.

Threat of Substitutes: LOW HVAC and refrigeration equipment is essential infrastructure. There are no substitutes for cooling food, maintaining comfortable indoor temperatures, or preserving temperature-sensitive products. The transition to different refrigerant technologies represents product evolution rather than substitution.

Competitive Rivalry: MODERATE The North American HVAC distribution market is moderately fragmented, characterized by a mix of well-established global players and a growing number of regional and specialized distributors. In Europe, Beijer Ref faces less consolidated competition, having achieved dominant position through two decades of acquisitions.

Hamilton Helmer's 7 Powers Framework

Which of the seven strategic powers does Beijer Ref possess?

Scale Economies: YES Purchasing scale enables better terms from suppliers. Logistics efficiency improves with density. Fixed costs (IT systems, management) spread across larger revenue base.

Network Effects: PARTIAL The more branches Beijer Ref operates in a region, the more attractive it becomes to manufacturers seeking distribution partners. This creates mild network effects, though not of the winner-take-all variety seen in digital platforms.

Switching Costs: YES Installers invest time learning distributor systems, establishing credit relationships, and developing personal connections. These create meaningful friction against switching.

Counter-Positioning: YES Beijer Ref's model of representing multiple manufacturers while maintaining independence creates counter-positioning against OEMs who might consider forward integration. The distributor's relationships with competing manufacturers would be threatened if any single OEM acquired control.

Brand: PARTIAL In local markets, acquired brands (Dean & Wood, HRP, Heritage Distribution) carry meaningful equity with installers. The Beijer Ref corporate brand matters more with investors and suppliers than end customers.

Cornered Resource: YES Exclusive distribution agreements in various markets represent cornered resources. The green technology manufacturing capabilities at SCM Frigo and Fenagy represent another form of cornered resource—proprietary technology that competitors cannot easily replicate.

Process Power: MODERATE The acquisition and integration playbook represents a form of process power. Two decades of experience acquiring and integrating distributors creates organizational capabilities that are difficult to replicate.

Competitive Comparison: Beijer Ref vs. Watsco

With a $16bn market cap and $7bn sales, Watsco is the clear leader among US HVACR distributors. It has compounded sales at 8.6% over 18 years – see chart below. 96% of sales are in the US and Canada, and Residential accounts for 70% of sales.

Watsco is the largest player in the fragmented heating, ventilation, air conditioning, and refrigeration distribution industry with a mid- to high-teens percentage market share. The company mostly operates in the United States (about 90% of sales) with an outsize presence in the Sunbelt states.

Key differences:

Dimension	Beijer Ref	Watsco
Geographic Focus	Global (45 countries)	North America (96% of sales)
Primary Products	Refrigeration (historically), HVAC (growing)	HVAC (residential focus)
OEM Relationships	Multiple independent	65% Carrier dependence via JVs
Green Tech	Own manufacturing (SCM Frigo, Fenagy)	Distributor only
Ownership	EQT (29%) + founders on board	Founder-controlled (53%)

Watsco operates in a massive but fragmented market. The North American HVAC distribution industry exceeds $50 billion in annual sales, spanning tens of thousands of contractors and thousands of independent distributors. Despite generating over $7 billion in revenue, Watsco still commands less than a 15% share, leaving significant room for organic and bolt-on expansion.

Watsco's Carrier relationship provides access to premium products but creates dependency. Beijer Ref's multi-manufacturer model provides diversification but may limit access to top-tier brands in the US market.

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XI. Bull and Bear Cases

The Bull Case

1. Regulatory Tailwinds with Decades of Runway: The F-gas phase-out creates a mandated replacement cycle through 2030 in Europe, with similar regulations spreading globally (including US adoption of the Kigali Amendment in 2022). This isn't discretionary demand—it's required by law.

2. Structural Consolidation Opportunity: The North American HVAC distribution market is moderately fragmented, and Europe remains even more so outside of Beijer Ref's presence. With 1,000+ identified acquisition targets, the consolidation runway extends for years.

3. Green Technology Differentiation: Beijer Ref is the only refrigeration wholesaler in the world with global manufacturing of green refrigeration technology. This positions the company to capture margin as the transition accelerates.

4. Owner-Operators Plus PE Resources: The combination of founders on the board (Magnusson and Bertland) with EQT's resources creates aligned incentives and execution capability.

5. US Platform Optionality: If Heritage Distribution proves successful, Beijer Ref has a platform to pursue decades of US consolidation in a market even more fragmented than Europe.

The Bear Case

1. US Execution Risk: Compared to Watsco, Beijer Ref lacks OEM approval from any supplier other than Rheem. Access to top-tier suppliers may be far more difficult for Beijer to gain in the US than has been the case elsewhere. The European playbook may not translate.

2. Supplier Concentration Risk: The company depends on exclusive distribution agreements that require periodic renewal. Any major OEM deciding to change distribution strategy could impact revenue materially.

3. EQT Exit Uncertainty: Private equity funds have finite lives. EQT will eventually exit, potentially creating selling pressure or strategic disruption.

4. Valuation: The stock trades at premium multiples reflecting growth expectations. Any disappointment in organic growth or acquisition integration could trigger multiple compression.

5. Tariff and Trade Risk: As a global distributor sourcing products from multiple regions, Beijer Ref faces exposure to trade tensions, tariffs, and supply chain disruptions.

Myth vs. Reality

Consensus View	Reality
"Boring distribution business"	Structural moat from local expertise, inventory, and relationships; green tech manufacturing adds differentiation
"Just riding F-gas regulations"	Proactively invested in manufacturing capabilities ahead of regulations; created capacity while competitors scrambled
"US expansion is plug-and-play"	US market structure fundamentally different; Carrier/Watsco relationship shows tighter OEM control; Rheem positioning is weaker than European brand portfolio
"PE ownership creates pressure"	Minority stake means EQT must collaborate rather than dictate; founders remain on board; alignment has accelerated growth

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XII. Conclusion: The Cold Chain's Future

Beijer Ref's 159-year journey from grain trading to climate technology distribution illustrates the enduring value of trading DNA—the skills of logistics, supplier management, and customer relationships that transfer across commodities and eras.

The company today stands at an inflection point. The regulatory-driven transition away from HFC refrigerants creates a once-in-a-generation replacement cycle, driving demand growth independent of broader economic conditions. The US market entry opens the world's largest addressable market, but with execution risks that remain to be resolved. And the green technology manufacturing capabilities provide differentiation that pure distributors cannot match.

For long-term fundamental investors, Beijer Ref presents an attractive combination: structural growth drivers, competitive moats, and aligned ownership. The key variables to monitor:

1. US organic growth and margin progression: Success here validates the expansion thesis; struggles would highlight structural differences between European and American markets.

2. OEM segment growth: The proprietary green technology business carries higher margins and provides competitive differentiation. Growth acceleration here would signal that Beijer Ref's early investments are paying off.

3. Acquisition pace and integration success: With 1,000+ identified targets, execution matters more than pipeline. Watch for deals per year and post-acquisition performance.

From monsoon streets in Mumbai to grocery store freezers in Munich, from district heating plants in Denmark to supermarket chains in Sydney, Beijer Ref's products keep food fresh, buildings comfortable, and industrial processes running. The company that began trading grain in 1866 now trades in something equally essential: the technologies that will enable humanity to stay cool as the planet warms.

The Cold Chain King has built a global empire, one acquisition at a time. Whether that empire can extend to America—and whether green technology manufacturing can become a pillar equal to distribution—will determine whether the next 159 years prove as transformative as the last.