Partners Group, a global private markets firm, announced strong growth at its two US HVAC portfolio companies, DiversiTech and PremiStar, driven by increasing demand for cooling amid extreme weather. Since their acquisition in 2021, DiversiTech's revenues have risen 60%, while PremiStar's revenues have doubled. Both companies have delivered robust EBITDA growth, with CAGRs of 14% and 22%, respectively.
The performance reflects broader tailwinds in the US HVAC market, including the rising frequency of extreme weather events that underscore the need for efficient HVAC systems and regular maintenance. An ageing installed base of HVAC units, regulatory pushes for energy efficiency, and the adoption of building automation solutions are also contributing to demand. These factors are expected to sustain growth as communities and businesses adapt to changing climate conditions.
Partners Group has leveraged its operational expertise to implement value creation plans at both companies, focusing on optimizing operations, supply chains, and technology, as well as pursuing selective add-on acquisitions. This approach is designed to support future growth and enhance market leadership.
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."
DiversiTech, a manufacturer and distributor of HVAC parts and supplies, and PremiStar, a commercial HVAC services provider, are well-positioned to capitalize on these trends. Partners Group's investment platform has enabled the sharing of best practices between the two companies, driving operational improvements and strategic growth initiatives.
The news underscores the critical role of HVAC infrastructure in addressing climate-related challenges. As extreme weather becomes more common, the importance of reliable and efficient cooling systems cannot be overstated. Partners Group's portfolio companies are at the forefront of providing essential products and services to meet this growing need.
For more information about Partners Group and its investments, visit partnersgroup.com or follow on LinkedIn.
