EBM-Papst sold to US group Madison Air in $5.4B deal

The family-owned company EBM-Papst, based in Mulfingen, Baden-Württemberg, is set to gain a new owner. According to Reuters, the deal is worth $5.4 billion USD, with Handelsblatt citing a net sale price of €4.8 billion. The acquisition remains subject to regulatory approvals and is expected to be finalised by the end of 2026.

EBM-Papst expects the deal with Madison Air to provide better access to the US market, where demand for cooling solutions is rising. This growth is driven in part by the expansion of data centres and AI infrastructure. In the last financial year, EBM-Papst’s US revenue grew by 25 per cent to €424 million. The company plans to double the capacity of its plant in Telford, Tennessee. Madison Air currently generates around 95 per cent of its revenue in North America and aims to expand its presence in Europe and Asia through this acquisition. The company manufactures ventilation technology for data centres and cleanrooms and is already a customer of EBM-Papst.

Within electromobility, EBM-Papst is renowned for its cooling solutions. Compact fans and pump drives for the complex thermal management of high-power charging stations have long been a part of its portfolio. Whether this will continue under the new ownership remains to be seen.

The Swabian company employs over 13,000 people worldwide, including around 5,800 in Germany. In the financial year ending March, revenue increased by 6 per cent to approximately €2.24 billion. EBM-Papst has set a target of achieving €3.4 billion in revenue by 2029. CEO Klaus Geißdörfer stated that this goal could be reached sooner with Madison Air’s support.

In recent years, EBM-Papst has increasingly focused on growth areas such as data centres, heat pumps, and refrigeration and air-conditioning technology. At the same time, the company has scaled back parts of its business with passenger car manufacturers and household appliance producers. EBM-Papst’s headquarters will remain in Mulfingen even after the acquisition. The transaction is being financed through a mix of equity and debt. Should the acquisition fail, documents filed with the US Securities and Exchange Commission (SEC) stipulate compensation of €250 million for the previous owners. This marks another major German climate technology specialist being acquired by a US group. In early 2024, Viessmann sold its climate and heat pump business to Carrier Global for around €12 billion.

reuters.com, handelsblatt.com (DE)