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 the demand for cooling solutions. Since their acquisition in 2021, DiversiTech's revenues have risen by 60%, while PremiStar's revenues have doubled. The companies have delivered EBITDA growth of 14% and 22% CAGR, respectively, reflecting robust tailwinds in the HVAC market.
The increasing frequency of extreme heat events has highlighted the critical importance of HVAC system maintenance to ensure optimal performance and efficiency. This, coupled with an aging installed base of HVAC units and the push for energy-efficient upgrades, has driven demand for both parts and maintenance services. The rise of building automation solutions further contributes to the sector's growth.
Partners Group has leveraged its investment platform to identify best practices across both companies, implementing transformational value creation plans to support future growth. These initiatives include investments in operations, supply chains, and technology, as well as executing selective add-on acquisitions. Wolf Scheider, Head of Private Equity at Partners Group, noted, "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 underscores the resilience and growth potential of the US HVAC market. With extreme weather expected to persist, the need for reliable cooling systems and their maintenance will continue to grow, positioning these companies well for sustained success. Partners Group's strategic approach to value creation and its focus on operational improvements have been key drivers of this performance.
As the world grapples with the effects of climate change, the HVAC industry is poised for further expansion. The investments made by Partners Group in DiversiTech and PremiStar are not only yielding financial returns but also contributing to the adaptation of communities and businesses to hotter climates. For more information, visit Partners Group.
