Partners Group, a global private markets firm, announced strong growth at its two US HVAC portfolio companies, DiversiTech and PremiStar, as extreme weather conditions increase demand for cooling solutions. Since their acquisition in 2021, DiversiTech has seen revenues rise 60%, while PremiStar's revenues have doubled. The companies have delivered EBITDA growth of 14% and 22% CAGR, respectively.
The growth is attributed to several tailwinds in the US HVAC market, including the increasing frequency of extreme weather events, which underscores the importance of HVAC system maintenance for optimal performance and efficiency. Additionally, an aging installed base of HVAC units, the need for more 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 and implement transformational value creation plans across both companies. These plans focus on investing in operations, supply chains, and technology, as well as executing 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."
The strong financial performance of DiversiTech and PremiStar reflects the resilience and necessity of the HVAC industry in the face of climate change. DiversiTech, a manufacturer and distributor of HVAC parts and supplies, has benefited from increased demand for replacement parts as existing systems require more frequent maintenance. PremiStar, one of the largest commercial HVAC services providers, has seen growth in its service contracts as businesses prioritize maintaining comfortable and efficient environments for employees and customers.
The need for energy-efficient upgrades is also a significant driver. With rising energy costs and environmental regulations, many building owners are investing in modern, high-efficiency HVAC systems. This trend is expected to continue, providing a long-term growth opportunity for companies like DiversiTech and PremiStar.
Partners Group's approach to value creation includes sharing best practices across its portfolio. By implementing operational improvements and technological advancements, the companies are better positioned to capitalize on market trends. The firm's global presence and expertise in private markets have been instrumental in driving this growth.
As extreme weather events become more common, the importance of reliable HVAC systems cannot be overstated. Partners Group's portfolio companies are playing a crucial role in helping communities and businesses adapt to these challenges. With continued investment and strategic initiatives, the outlook for these companies remains positive.
For more information about Partners Group, visit www.partnersgroup.com or follow them on LinkedIn.
