Harvia to Acquire ThermaSol for USD 30.4 Million, Bolting On US Steam

Harvia Plc announced on 23 July 2024 (07:30 EEST) that it has signed an agreement the prior day (22 July U.S. Central Time) to acquire 100% of the shares of ThermaSol Steam Bath LLC, a Round Rock, Texas-based manufacturer of residential steam products and smart-shower controls. The purchase price is USD 30.4 million (EUR 27.9 million at the USD 1.09/EUR exchange rate), subject to customary closing adjustments. The transaction is expected to close by the end of July 2024. (Full Harvia M&A history, stock chart, and earnings calendar in our Harvia News hub.)

What ThermaSol Is

ThermaSol was established in 1958 by the Altman family and is the leading manufacturer of high-end steam showers and steam rooms in the United States and one of the largest players in the U.S. residential steam solutions market. The company has been family-owned since founding. Head office and design and assembly facilities are in Round Rock, Texas, in the Austin area. ThermaSol has approximately 40 employees. Net sales totaled USD 14.4 million in 2023.

The ThermaSol product line includes steam generators, steam and shower heads, digital control units, smart shower components, and accessories. The company also distributes indoor and outdoor saunas as well as traditional sauna heaters through its dealer network. In these distributed product categories, ThermaSol was already a Harvia Group customer before the acquisition, so the two companies had a pre-existing commercial relationship.

ThermaSol has built a nationwide distribution network of plumbing wholesalers and kitchen and bath showrooms, supplemented by advanced online marketing capabilities that reach residential customers directly. Over 65 years of operating history has produced strong expertise in steam solutions, with innovation driving the smart steam shower category in the U.S.

ThermaSol Key Financials

ThermaSol financial history (USD million):
2021: Net sales 15.0 / Adj. EBITDA 2.8 (18.4% margin)
2022: Net sales 14.7 / Adj. EBITDA 2.7 (18.4%)
2023: Net sales 14.4 / Adj. EBITDA 2.5 (17.2%)
Total assets (31 Dec 2023): USD 9.4 million. Total liabilities: USD 1.9 million. Employees: ~40.

Post-acquisition, illustrative combined Harvia 2023 pro forma revenue was EUR 163.7 million with adjusted EBIT of EUR 35.9 million (21.9% margin). Harvia's net debt will rise from EUR 37.6 million at the end of 2023 to EUR 64.9 million, and interest-bearing debt from EUR 75.4 million to EUR 95.4 million. Equity ratio adjusts to 43.9% (51.0% at end of 2023), and leverage rises to 1.5x (0.9x). All metrics remain well within Harvia's long-term targets.

Strategic Rationale: Three Deal Drivers

Harvia laid out three pillars for the ThermaSol acquisition at the July 2024 announcement.

Growth potential in steam. Steam provides an attractive growing market that strengthens Harvia's offering, since at the time of the deal about 90% of Harvia Group revenue came from traditional sauna solutions. The acquisition addressed Harvia's strategic aim to deliver the full sauna experience across sauna types. The U.S. steam market is forecast to grow 5% per year through 2028.

Complementary offering and capabilities. ThermaSol's expertise in steam solutions provides an excellent strategic fit with Harvia's strong traditional sauna offering. ThermaSol's nationwide plumbing wholesaler and kitchen-and-bath showroom distribution network expanded and complemented Harvia's existing U.S. distribution footprint. Location near Austin, Texas serves as an additional hub for Harvia's North American operations, now covering both the Southeastern U.S. (Lewisburg, West Virginia) and the Texas-Central corridor.

Market consolidation. The U.S. steam market was already consolidated at the time of the deal, making organic entry without an existing presence challenging. ThermaSol, as one of the largest players in the residential steam market, represented the cleanest available consolidation play.

The North American Sauna Market Context

The North American sauna market size is approximately USD 800 million (2023). Growth has averaged ~15% per year from 2019 through 2023. The installed base of 1 to 1.5 million saunas means only about 1% of U.S. households have a sauna. By application: ~65% residential, ~35% commercial. By type: traditional 40 to 45%, infrared 35 to 40%, steam ~20%. ThermaSol has strong capabilities in steam, a category where Harvia's pre-deal business was small. Harvia's current stronghold is traditional residential, but infrared (~35-40% of the market) and steam (~20%) were both flagged as organic and inorganic growth priorities.

Management and Integration

As part of her role as Harvia's Head of Region North America and President of Harvia US Inc., Jennifer Thayer became CEO of ThermaSol on closing. (Effective 1 November 2025, Thayer was succeeded in the North America role by Nathan Hagemeier.) The seller in the transaction, ThermaSol's then-CEO and owner Mitch Altman, moved to a Strategic Adviser role with Harvia to support transition of the business and management of customer relations.

Harvia is very happy to announce the acquisition of ThermaSol. ThermaSol's high-end residential steam offering is an excellent fit to our full sauna experience portfolio. The acquisition supports our strategic focus areas of delivering the full sauna experience, winning in strategically important markets, and taking an active consolidator role in the industry through M&A. In addition, the warm, family company culture combined with the ambition to provide leading solutions to the market, resonate well with our own.

The above is Matias Jarnefelt, CEO of Harvia. ThermaSol's Mitch Altman added: "Harvia's acquisition of ThermaSol marks a transformative milestone, creating the world's foremost health and wellness company in the sauna market. United, we will promote relaxation, vitality, and well-being on a global scale."

Deal snapshot: Target: ThermaSol Steam Bath LLC (Round Rock, TX). Acquirer: Harvia Plc. Signed: 22 July 2024 (U.S. Central). Announced: 23 July 2024 (Helsinki). Consideration: USD 30.4 million (EUR 27.9 million). 2023 net sales: USD 14.4 million. Employees: ~40. Closed: 31 July 2024. Financing: EUR 20 million bullet loan plus cash. Synergies: EUR 1.7 million annually by end of 2027 (sourcing, logistics, marketing, cross-sell, distribution, common management). One-off costs: EUR 1.4 million over 2024-2026. Advisors: Fredericks Michael & Co. (financial), Borenius Attorneys and Vela Wood (legal), Hill & Knowlton / Burson (communications).

Financing

Harvia financed the acquisition with a EUR 20 million bullet loan and cash on hand. Harvia's balance sheet remained conservative, with net debt to EBITDA staying well below the 2.5x long-term target even after closing. The company reaffirmed its long-term financial targets: 10% average annual revenue growth, adjusted operating margin above 20%, net debt to adjusted EBITDA below 2.5x.

What Happened Next

The deal closed 31 July 2024 as planned. ThermaSol began consolidating in Harvia's Q3 2024 financial results on 7 November 2024. Q1 2025 North American revenue grew 58.8% year over year to EUR 21.8 million, driven heavily by ThermaSol consolidation plus continuing organic Almost Heaven momentum. In Q3 2025, Harvia announced the ThermaSol Solaris solar-powered sauna was named one of TIME Magazine's Best Inventions of 2025, and launched the ThermaSol Astra/Fortis/Ombra premium sauna collection.

By the time Harvia reported full-year 2025 results on 12 February 2026, Järnefelt was describing the deal as largely complete and contributing as expected.

"We are pleased with ThermaSol. It's providing us a solid base." — Matias Järnefelt, CEO, Harvia Q4 2025 earnings call, 12 February 2026

On the same call, he flagged the next US category in Harvia's crosshairs, making clear ThermaSol was not the final US bolt-on: "One of the prime candidates is infrared sauna business in the United States." That positions ThermaSol as a platform, not an endpoint.

Harvia paid approximately 2.1x trailing revenue for a domestic US steam platform that is already compounding its North American growth and insulating the Group from tariff risk on European-origin heaters. This is exactly the kind of adjacency the CMD 2024 M&A thesis called for. Year-one execution has exceeded the original plan: Solaris on the TIME list, Astra/Fortis/Ombra extending ThermaSol beyond steam into full premium sauna, and North American revenue growth accelerating rather than decelerating. The deal already looks cheap in hindsight.