Partners Group, a global private markets firm, announced strong growth at its two US HVAC portfolio companies, DiversiTech and PremiStar, citing increased demand for cooling due to extreme weather. Since their acquisition in 2021, DiversiTech's revenues have risen 60%, while PremiStar's revenues have doubled. The companies have achieved EBITDA growth of 14% CAGR and 22% CAGR, respectively.
The growth reflects tailwinds in the US HVAC market, including the increasing frequency of extreme weather conditions, which underscore the importance of HVAC system maintenance for optimal performance and efficiency. Additionally, the aging installed base of HVAC units, the need for energy-efficient upgrades, and the rise of building automation solutions are driving demand for both parts and maintenance services.
Partners Group has leveraged its investment platform to identify best practices across both companies, implementing transformational value creation plans to support future growth. These initiatives include investments in operations, supply chains, and technology, as well as selective add-on acquisitions.
Wolf Scheider, Head of Private Equity at Partners Group, commented, "Across our HVAC portfolio, we are seeing organic, disciplined growth. As heat waves become a defining challenge of how we live and work, demand for HVAC parts and maintenance is rising. Our portfolio companies are essential to helping communities and enterprises adapt to these conditions, with meaningful growth runway ahead as value creation initiatives mature."
This news is significant as it highlights the critical role of HVAC systems in adapting to climate change and the growing market opportunities for companies providing parts and services. For the industry, it underscores the importance of investing in operational efficiency and technology to meet rising demand. For consumers and businesses, it emphasizes the value of regular HVAC maintenance to ensure performance and energy efficiency, potentially leading to cost savings and reduced environmental impact.
Partners Group, with around 2,000 professionals and over USD 186 billion in assets under management globally, manages investment programs across private equity, private credit, infrastructure, real estate, royalties, and special opportunities. The firm's operational approach aims to transform businesses into market leaders. More information is available at www.partnersgroup.com.
