mynth
11/2021

PARTNERS GROUP takes majority stake in DIVERSITECH

UNITED STATES Industrial Equipment / Components / Valves, Pumps & Taps EV 1b - 4b USD

Context

DiversiTech has been acquired by Partners Group to expand the private markets firm's exposure to the HVAC/R components sector and to leverage the target's established distribution network. The transaction follows a period of rapid growth for DiversiTech, during which it doubled its SKU count, invested heavily in manufacturing and digital systems, and completed multiple brand acquisitions, positioning it as a sizable supplier with a diversified product portfolio. Partners Group and existing management will become the largest shareholders, while Permira retains a minority interest, and the deal is expected to close in December 2021 pending customary approvals. The acquisition aligns with Partners Group's strategy of adding stable, cash‑generating businesses that benefit from operational scaling and cross‑sell opportunities within its broader portfolio. By integrating DiversiTech's supply chain capabilities and digital infrastructure, the acquirer aims to enhance service levels, broaden geographic reach and generate cost efficiencies through shared services and procurement synergies. The combined entity is projected to strengthen its market position, improve margin performance and accelerate product development cycles, thereby delivering incremental value to customers and investors across the HVAC/R ecosystem.

DIVERSITECH, which reported an EBITDA margin of LOGIN in 2022, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level LOGIN than the average currently observed in the Industry & Manufacturing sector (11.1x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

DiversiTech supplies heating, ventilation, air conditioning and refrigeration (HVAC/R) parts, supplies and accessories to a broad customer base that includes contractors, original equipment manufacturers, distributors and service providers. The company originated more than five decades ago and has expanded its product catalogue from roughly 17,000 items to over 30,000 distinct stock keeping units through organic development and eight brand acquisitions, such as hilmor®, Fresh-Aire UV® and Packard®. Its operations integrate manufacturing facilities, regional distribution centers and a digital backbone that incorporates enterprise resource planning, warehouse management, digital asset management, and customer relationship management systems. DiversiTech offers supply chain services, dedicated account management, product management and digital engagement platforms that enable customers to order, track and receive technical support online.

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Historical Financials (USD)

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REFERENCES

Valuation range: EV 1b - 4b USD

Revenue range: 250M - 500M USD

EBITDA range: 50M - 100M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of DIVERSITECH by PARTNERS GROUP are reserved for mynth community members. Register for free to unlock full data.

Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Target: diversitech

Acquirer: partners group