Target Information

The Apollo-managed funds have announced their intention to acquire a majority stake in Kelvion, a leading global provider of energy-efficient heat exchange and cooling solutions, from Triton. Triton will retain a minority interest in the company. Founded over a century ago and headquartered in Germany, Kelvion has established itself as a premier provider of thermal management solutions across diverse industrial and high-growth sectors.

Kelvion's primary focus is on advanced cooling technologies, especially in data centers, which is currently its largest and fastest-growing segment. The company also plays a crucial role in various energy transition markets, including carbon capture, hydrogen production, electrification, renewables, and heat pumps, delivering highly reliable and sustainable solutions to its global clientele.

Industry Overview in Germany

Germany's energy market has undergone significant transformation in recent years, particularly as it moves towards sustainability and energy efficiency. The country is known for its pioneering efforts in renewable energy sources, with an emphasis on transitioning from fossil fuels to cleaner alternatives. This shift is driven by government policies and public support for green technologies, positioning Germany as a leader in the global energy transition.

Furthermore, the industrial sector in Germany remains a key player in driving innovation and efficiency, especially within the fields of technology and manufacturing. Companies are increasingly investing in advanced technologies that enhance energy efficiency and reduce environmental impact. This trend aligns with the demands of the global market, which is progressively gravitating towards sustainable practices.

The adoption of cutting-edge technologies, such as artificial intelligence and cloud computing, is reshaping industrial processes. German businesses are leveraging these advancements to improve operational efficiencies and innovate new solutions. This transformation is critical, especially as the country aims to meet its climate objectives and bolster its competitive edge on the international stage.

The combination of these factors contributes to a stable yet dynamic environment for companies like Kelvion that focus on providing sustainable solutions in energy management and thermal technologies. The ongoing need for energy-efficient solutions and innovations presents significant opportunities for growth and expansion in this sector.

Rationale Behind the Deal

The acquisition by Apollo reflects the strong growth potential of Kelvion, particularly due to its involvement in several prominent secular tailwinds like the demand for energy-efficient technologies and solutions. With a focus on industrial innovation and sustainability, Apollo aims to leverage Kelvion’s established market position and enhance its commitment to delivering cutting-edge solutions in energy efficiency.

Additionally, Triton's decision to maintain a minority stake signifies a continued partnership which will support Kelvion’s strategic growth. The collaboration combines the strengths of both investors to boost innovation and facilitate global expansion, aligning perfectly with evolving market demands.

Investor Information

Apollo is a distinguished global alternative asset manager, recognized for its commitment to providing clients with innovative capital solutions across a broad risk-reward spectrum. With over three decades of experience, Apollo has developed a fully integrated investment platform that serves the financial needs of its clients while also fostering substantial growth in the companies it invests in.

As of June 30, 2025, Apollo manages assets totaling $840 billion, showcasing its capability and influence in the market. The firm has consistently demonstrated a dedication to supporting initiatives that drive climate and energy transitions, having committed approximately $58 billion to related investments in the past five years.

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The acquisition of Kelvion by Apollo is viewed positively within the investment community, reflecting a strategic move aligned with ongoing market trends. Kelvion's established reputation in energy-efficient solutions positions it favorably to capitalize on the growing demand for such technologies worldwide.

The partnership between Apollo and Triton is seen as beneficial, as it combines Apollo's expertise in industrial technology and clean energy with Triton's established position in mid-market investments. This collaboration can accelerate Kelvion's growth trajectory, enhancing its ability to innovate and expand its market presence.

Moreover, with the increasing emphasis on sustainability and energy efficiency, Kelvion stands to benefit from the regulatory changes and market shifts in major economies —particularly in Germany, which is at the forefront of energy transition initiatives. Therefore, the investment is perceived as timely and strategic.

Overall, this deal represents a solid investment opportunity for Apollo, reflecting confidence in the robust market dynamics that will drive growth for Kelvion in the coming years. Investors can expect a positive return on investment while contributing to a critical transition in the energy sector.

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