International. Partners Group, a global private markets firm, has agreed, on behalf of its clients, to acquire DiversiTech, from funds advised by global private equity firm Permira.
The investment values DiversiTech at an enterprise cost of $2.2 billion. As part of the transaction, Permira and management will remain minority investors in the company.
Founded in 1971 and headquartered near Atlanta, Georgia, DiversiTech is a manufacturer and supplier of components and related products for multiple industries. The company serves more than 6,000 customers through a broad portfolio of products in six families, including HVAC equipment assembly, electrical and spare parts, condensate management and indoor air quality. DiversiTech has 1,250 employees in 20 locations in the US, Canada and the UK.
Partners Group will build on its extensive experience in the HVAC sector, including its August 2021 acquisition of Reedy Industries, a U.S. HVAC business services provider, to partner with the company's management team, led by CEO Andy Bergdoll. Key value creation initiatives will include accelerating new product development, expanding through mergers and acquisitions, and bolstering in-house manufacturing capabilities.
Andrew Oliver, Managing Director, Private Equity Goods and Products, Partners Group, says: "We follow DiversiTech through our thematic investment approach and are convinced in its future growth prospects given the expanding installed base of HVAC equipment and the recurring demand for the company's essential products, parts and supplies. We are excited to partner with Andy and the DiversiTech team to lead the company's next phase of growth."
Andy Bergdoll, CEO of DiversiTech, comments, "As a result of investments in our team, product lines and infrastructure over the past five years, DiversiTech has a strong foundation and leadership position in the North American HVAC parts and accessories market. We look forward to continuing to build on our decades-long history of market-leading organic growth and taking the company to the next level under Partner Group ownership."
Latham & Watkins LLP represented Partners Group in the transaction.
