Brookfield has acquired Chemelex, a leading manufacturer of heat-control systems, for $1.7 billion, aiming to unlock its growth potential and enhance operational efficiencies as a standalone entity in a rapidly expanding market for energy-efficient solutions.

Information on the target

Chemelex is a prominent manufacturer specializing in heat-control systems, recognized for its innovative solutions and robust product offerings. The company has established itself as a market leader, catering to a diverse clientele with essential products that ensure consistent demand. Despite its strong fundamentals, Chemelex had been undervalued and underfunded while operating as part of a larger global conglomerate, which hindered its growth potential and operational efficiency.

In 2024, Chemelex was put up for auction for the third time in twelve years, reflecting the parent company's ongoing struggle to unlock the business's true value. This repeated attempt to divest highlighted the challenges faced by the company in achieving its full potential within a conglomerate structure, making it an attractive target for private equity investment.

Industry overview in the target’s specific country

The heat-control systems industry is experiencing significant growth, driven by increasing demand for energy-efficient solutions across various sectors, including industrial, commercial, and residential applications. In the specific country where Chemelex operates, the market is characteri