Madison Air Solutions to buy German fan maker ebm-papst in $5.4 billion deal
MAIR•ebm-papst operations and financials
For Madison Air, the acquisition provides access to ebm-papst's technology and customer base, particularly in Europe and Asia, helping it expand beyond its core North American market.
Founded in 1963, ebm-papst employs more than 13,000 people worldwide and is a major supplier of fans, motors and ventilation systems used in air conditioning and refrigeration.
The company said it would retain its headquarters in Mulfingen, southern Germany, as well as key research, development and production operations.
Ebm-papst generated turnover of €2.24 billion ($2.6 billion) in the fiscal year ended in March and Geissdoerfer aims to grow the core business to €3.4 billion by 2030.
Madison Air to acquire ebm-papst for $5.4 billion
U.S.-based Madison Air Solutions MAIR.N said on Monday it would buy German fan maker ebm-papst in a $5.4 billion deal, expanding its air quality and ventilation business in a drive to tap the fast-growing data-centre cooling market.
The transaction will see ebm-papst's three shareholder families transfer their stakes to Madison Air, part of billionaire Larry Gies' Madison Industries, which specialises in indoor air quality systems and ventilation equipment for cleanrooms and data centres.
Companies seek growth in Europe and the U.S. data-centre market
Madison Air, whose shares fell 5% following the announcement, is seeking to strengthen its position in Europe and broaden its technology portfolio.
Ebm-papst said the deal would allow it to tap the booming U.S. data centre market, where demand for cooling systems is rising as operators deploy increasingly powerful chips and servers.
