As extreme weather events become more frequent, the demand for cooling solutions has surged, benefiting companies in the HVAC sector. Partners Group, a global private markets firm, has seen its two US HVAC portfolio companies experience substantial growth since their acquisition in 2021. DiversiTech, a manufacturer and distributor of HVAC parts and supplies, has seen revenues increase by 60%, while PremiStar, a commercial HVAC services provider, has doubled its revenues over the same period. This growth is reflected in their EBITDA, which has risen at a compound annual growth rate of 14% for DiversiTech and 22% for PremiStar.
The strong financial performance is attributed to several tailwinds in the US HVAC market. The increasing occurrence of extreme weather conditions has highlighted the importance of HVAC system maintenance to ensure optimal performance and efficiency. Additionally, the rapidly ageing 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. These factors have created a favorable environment for companies like DiversiTech and PremiStar, which are essential in helping communities and enterprises adapt to changing climate conditions.
Partners Group has leveraged its investment platform to identify and implement best practices across both companies, focusing on transformational value creation plans to support future growth. This includes 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 success of these investments underscores the strategic importance of the HVAC sector in the context of climate change. As temperatures continue to rise, the need for reliable and efficient cooling systems will only increase, providing sustained opportunities for companies in this space. Partners Group's focus on operational improvements and strategic acquisitions positions its portfolio companies to capitalize on these trends, ensuring they remain market leaders in their respective fields.
Partners Group, with over USD 186 billion in assets under management and a global presence, continues to identify attractive investment themes and transform businesses into market leaders. The firm's operationally oriented approach has been instrumental in driving growth at DiversiTech and PremiStar, demonstrating its ability to create value in sectors that are critical to modern life. For more information, visit Partners Group's website.
