Sauna manufacturer Harvia acquires Austrian Sentiotec
The acquisition strengthens Harvia’s market position in Europe
Harvia acquires Austrian company Sentiotec, which has the industry’s largest product range in traditional saunas, infrared saunas and sauna products. With the acquisition Harvia becomes a true European one-stop-shop for saunas in both professional and consumer markets. This creates an excellent foundation for Harvia’s growth in Central Europe and for the company’s leadership in the sauna industry, which is facing diversification and digitalization.
Harvia Ltd, Finland’s market leader and the world’s leading sauna heater manufacturer, has acquired Austrian Sentiotec GmbH, which has a net revenue of 8 million euros. Sentiotec is specialized in sauna interiors, infrared saunas and steam rooms, digital control units, sauna products and electric sauna heaters. The seller is Abatec Group AG, a conglomerate in electronics.
– Harvia is already the world champion in sauna heaters. Our next goal is to reach the world championship in saunas overall. This acquisition combines two leading companies in sauna industry. In the future we will be able to offer a full selection of saunas both to professionals and consumers everywhere in Europe. The acquisition completes Harvia’s product portfolio with Sentiotec’s product portfolio. We were particularly interested in Domo and Sentiotec’s well-known brands, Harvia’s CEO Tapio Pajuharju explains reasons for the acquisition.
Sentiotec is strong especially in the German and Austrian markets. The company has built one of the largest distribution channels in the industry in these markets. By utilizing this channel Harvia will be able to increase the sales of its current products, which are manufactured mainly in Muurame, Finland. Sentiotec has manufacturing sites in Austria and Romania.
Hybrid saunas sell well in Central Europe
The acquisition strengthens Harvia’s position in digital control units for saunas. Sentiotec has the largest product portfolio of the industry in sauna and spa control units and their accessories.
– Sentiotec also has successfully combined traditional and infrared saunas. Significant part of its sauna sales comes from so-called hybrid saunas, which combine the best qualities of traditional and infrared saunas. The hybrid sauna is controlled with a user-friendly digital control unit. We believe that this trend will spread fast and we will soon become familiar with new sauna experiences in Finland, too, Mr. Pajuharju comments.
There is an extremely big growth potential in sauna and spa industry worldwide. The market position created by this acquisition gives Harvia a head start in claiming these opportunities. Previously about 60 percent of Harvia’s 50 million euros net revenue has come from exports. In this new situation the volume of international operations will further increase.
In international sauna and spa market Harvia is one of the best-known brands and the global market leader in sauna heaters. Harvia’s products are currently sold in 67 countries. The company has advanced product development and efficient manufacturing. This acquisition strengthens further Harvia’s global competitiveness.