Hidria CEO Iztok Seljak said that the sale was a "win-win-win situation" for all three companies involved. It will allow the industrial conglomerate to continue deleveraging whilst reaffirming its focus on the core automotive business.

IMP Klima stands to gain a strategic partner which will help promote development at the company that manufactures large-scale cooling solutions, said Seljak. Lindab will meanwhile strengthen its position as a leading European provider of solutions in construction.

The transaction is due to be completed on 1 July, as part of which the Swedish group will assume all staff, contracts and liabilities of IMP Klima, a company with annual revenues of around EUR 30m and workforce of 320 in Slovenia, Hidria said.

The Slovenian group has secured "exceptional projects in the automotive industry for 2016-2022 worth more than EUR 300 million," said Seljak, "which is why we have to redistribute all resources, human and financial, to carrying out this ambitious plan".

The Lindab group has a workforce of 4,900 staff in 32 countries and generated revenues of EUR 738m last year.

The Hidria group finished last year with revenues of EUR 245m and an operating profit of EUR 23.5m.