19 November 2021
Partners Group, a global private markets organisation, has agreed to acquire DiversiTech on behalf of its clients. The move, which now values the Company at USD2.2 billion, will see global private equity firm Permira, who purchased DiversiTech in 2017, remain a minority investor.
Founded in 1971 and headquartered near Atlanta, Georgia, DiversiTech is North America's largest HVACR equipment parts and accessories manufacturer. The Company serves over 6,000 customers through a broad product portfolio of c30,000 SKUs across six product families, including HVAC equipment mounting, electrical & replacement parts, condensate management and indoor air quality. DiversiTech has 1,250 employees across 20 locations in the US, Canada, and the UK.
Partners Group, recently acquired Reedy Industries, a leading provider of commercial HVAC services in the US, will partner with DiversiTech's existing management team, led by chief executive officer Andy Bergdoll, with the move planned to accelerate new product development, expanding through M&A, and bolstering internal manufacturing capabilities.
Andrew Oliver, managing director, Private Equity Goods & Products, Partners Group, said: "We tracked DiversiTech through our thematic investing approach and have conviction in its future growth prospects given the expanding installed base of HVAC equipment and the reoccurring demand for the Company's essential parts and supplies. We are excited to partner with Andy and the DiversiTech team to lead the Company's next phase of growth."
"We are incredibly proud of and thankful for all that Andy, and the nearly 1,250 strong DiversiTech employees have achieved, and I am excited that we will have the opportunity to continue to back them going forward," commented John Coyle, partner and head of New York at Permira. "In its 50-year history, DiversiTech has never been stronger and better positioned to continue its track record of market-leading growth, unrivalled customer experience and investment in people."
Andy Bergdoll, chief executive officer, DiversiTech, comments: "As a result of investments in our team, product lines and infrastructure over the last five years, DiversiTech has a solid foundation and leading position in the North American HVAC parts & accessories market. We look forward to building on our multi-decade history of market-leading organic growth and taking the Company to the next level under Partners Group's ownership."