Partners Group to Buy HVAC Firm DiversiTech in $2.2 Billion Deal

(Bloomberg) -- Buyout firm Partners Group Holding AG has agreed to acquire DiversiTech Corp. from private equity firm Permira in a deal that values the air conditioning and electrical parts manufacturer at $2.2 billion, including debt. 

The sale of the company is expected to close in December, with management and Permira retaining a minority stake in the company, according to statements provided to Bloomberg News.   

For Partners Group, the purchase will complement its recent acquisition of Reedy Industries, also a provider of equipment for commercial heating, ventilation and air-conditioning services. 

“Key value creation initiatives will include accelerating new product development, expanding through M&A, and bolstering internal manufacturing capabilities,” Partners Group Managing Director Andrew Oliver said in a statement.

Founded in 1971, DiversiTech, based in the Atlanta area, now serves more than 6,000 customers across 20 locations in the U.S., Canada and U.K. 

Permira invested more than $70 million to scale the company’s manufacturing, distribution and technology since it acquired it in 2017, according to a company statement. 

DiversiTech has made at least eight acquisitions to expand its brand portfolio and has almost doubled its product lineup under the ownership of Permira.

John Coyle, a Permira partner who also heads its New York office, said in a statement that the company has “never been stronger and better positioned to continue its track record of market leading growth.” 

Barclays Plc and Robert W. Baird & Co. acted as financial advisers to Permira. The law firm Skadden Arps Slate Meagher & Flom LLP advised Permira while Latham & Watkins represented Partners Group.

Bloomberg News previously reported that the company was for sale.

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