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 $2.2bn, 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.
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“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.
Source: Bloomberg BNN
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