Harvia Acquires Italian Timer Switch Maker Phoenix El-Mec to Secure Supply Chain

Harvia Plc signed and closed an agreement in September 2023 to acquire 100% of Phoenix El-Mec srl, an electromechanical timer switch manufacturer based in Belluno, in the Italian Alps north of Venice. Deal terms were not disclosed. The acquisition, described by management as a tactical rather than strategic M&A, addressed one of Harvia's persistent supply chain risks: a single-source dependency on a small Italian manufacturer for a critical heater component. (See all Harvia M&A activity in our Harvia News hub.)

What Phoenix El-Mec Makes

Phoenix El-Mec produces electromechanical timer switches that are a key component in Harvia's basic (entry-level) sauna heater lines. The timer switch is the analog knob-plus-timer that sets heater run time on older model sauna heaters (as distinct from digital control units like the Harvia Xenio or Harvia Fenix). The company also supplies timers to other industries including ovens, drying cabinets, and boiler manufacturers.

Phoenix had been Harvia's timer switch supplier since its establishment in 2013, a ten-year commercial relationship. The acquisition, in effect, formalized that relationship into vertical integration.

Why It Matters: Supply Chain Control

Harvia described the acquisition at its Capital Markets Day 2024 as an example of a tactical M&A transaction, as opposed to the strategic M&A transactions like ThermaSol, EOS, and Almost Heaven. The framework matters for investors parsing Harvia's M&A strategy: strategic acquisitions expand the product portfolio or geographic reach; tactical acquisitions secure or de-risk the existing supply chain. Both are part of the toolkit but should be sized and valued differently.

The specific driver was a supply chain problem that emerged during the 2020 to 2023 period. Harvia's heater production volumes grew rapidly from 2020 (EUR 109 million revenue) to peak 2021 (EUR 179 million), putting supplier pressure on small single-source component vendors. Phoenix El-Mec's capacity and technical reliability became a gating factor for Harvia's basic heater line availability. Acquiring the supplier solved the problem permanently and also gave Harvia access to the supplier's other customer relationships (ovens, boilers, drying cabinets), which can generate incremental non-sauna revenue at low marginal cost.

Integration and Adds to European Footprint

Phoenix El-Mec continues to operate from Belluno, adding Italy to Harvia's production footprint alongside Finland (Muurame, Sastamala), Romania (Gheorgheni), and Germany (Driedorf, via EOS). The company is a small fraction of Harvia Group revenue and headcount but is critical path for a product category that still represents meaningful volume across Harvia's entry-tier electric heater lines globally.

Deal snapshot: Target: Phoenix El-Mec srl (Belluno, Italy). Acquirer: Harvia Plc. Announced and closed: September 2023. Product: electromechanical timer switches for sauna heaters, ovens, drying cabinets, boilers. Prior relationship: Harvia supplier since 2013. Deal terms: not disclosed. Strategic framework: tactical M&A (supply chain resilience).

Phoenix El-Mec will never move the needle on Harvia's top line. But it illustrates how Harvia thinks about the M&A toolbox. Big strategic acquisitions (EOS, ThermaSol) get the headlines. Small tactical deals (Phoenix, eventually others) quietly de-risk the operating model and compound over years into an unassailable supply chain. For any sauna manufacturer still running on single-source EU component vendors, Phoenix is a reminder of what a well-capitalized consolidator does when it notices a pinch point: it buys the supplier.