Partners Group, a global private markets firm, announced strong growth at its two US HVAC portfolio companies, DiversiTech and PremiStar, as extreme weather conditions fuel demand for cooling and maintenance services. Since acquiring both companies in 2021, DiversiTech has seen revenues surge by 60%, while PremiStar's revenues have doubled, reflecting robust tailwinds in the HVAC market.
The financial performance is underpinned by several factors, including the increasing frequency of extreme weather events, which heightens the importance of HVAC system maintenance to ensure optimal performance and efficiency. Additionally, the aging installed base of HVAC units, the push for energy-efficient upgrades, and the rise of building automation solutions are driving sustained demand for both parts and services.
Partners Group has leveraged its investment platform to identify and implement best practices across DiversiTech and PremiStar, executing transformational value creation plans focused on operations, supply chains, and technology, as well as selective add-on acquisitions. These initiatives are designed to support future growth and enhance the companies' market positions.
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 companies have delivered impressive EBITDA growth, with DiversiTech achieving a 14% CAGR and PremiStar a 22% CAGR. This growth underscores the critical role these businesses play in the HVAC supply chain and services sector, positioning them well to capitalize on ongoing market trends.
Partners Group, with over USD 186 billion in assets under management globally, continues to focus on operationally oriented investments that transform businesses into market leaders. The firm's commitment to the HVAC sector reflects its broader strategy of identifying investment themes that address long-term societal and environmental needs, such as climate adaptation and energy efficiency.
