Information on the Target

Private Assets SE & Co. KGaA has successfully completed the acquisition of the Climate Ceiling Solutions division from Zehnder Group AG, following the announcement of the transaction on May 16, 2024. This acquisition encompasses both the German subsidiary, Zehnder Climate Ceiling Solutions GmbH, and the French counterpart, Zehnder Climate Ceiling Solutions SAS. The Climate Ceiling Solutions business specializes in providing efficient climate control solutions for commercial spaces through climate ceilings. The company will retain its existing locations in Lahr, Germany, and Evry, France.

Sven Dübbers, CEO of Private Assets SE & Co. KGaA, expressed optimism regarding this acquisition, highlighting the significant growth potential of the Climate Ceiling Solutions division. Given the increasing emphasis on climate-efficient commercial properties, he aims to leverage this opportunity for substantial expansion.

Industry Overview in Germany

The climate control industry in Germany is experiencing significant growth, driven by rising awareness of energy efficiency and sustainability in building practices. Innovations in technology and design are leading to more effective and environmentally friendly climate solutions, which have become essential components of modern commercial spaces.

Furthermore, regulatory measures set by the German government to reduce carbon emissions and promote energy-efficient buildings are contributing to the industry’s expansion. These initiatives encourage the adoption of sustainable technologies such as climate ceilings, which have a lower environmental impact while enhancing indoor comfort.

Germany’s market for commercial properties is witnessing an upsurge in demand for innovative climate control solutions. As businesses increasingly prioritize eco-friendly practices, the integration of advanced climate solutions into building infrastructures is becoming a crucial differentiator in the real estate sector.

With the rise of smart buildings that utilize data to optimize energy use and maintain superior indoor climates, the potential for growth in the Climate Ceiling Solutions segment is particularly promising. This market trend aligns perfectly with the strategic focus of Private Assets on investing in sustainable and technologically advanced solutions.

The Rationale Behind the Deal

The acquisition of the Climate Ceiling Solutions division is strategically aligned with Private Assets' commitment to invest in high-potential, climate-efficient businesses. Recognizing the market dynamics favoring sustainable building practices, this acquisition provides Private Assets with the opportunity to capitalize on an expanding sector with increasing demand for climate control solutions.

The existing operations in both Germany and France present immediate synergy potential, allowing Private Assets to streamline operations while enhancing service offerings to clients. The focus will be on improving profitability and market share in the growing climate solutions industry.

Information about the Investor

Private Assets SE & Co. KGaA is a Hamburg-based private equity firm specializing in majority investments in companies facing special situations. The firm is particularly focused on corporate spin-offs and mid-sized businesses with below-average performance and succession challenges. With a seasoned management team and a proven track record in transforming companies in special circumstances, Private Assets aims to ensure that its investments are efficiently and sustainably profitable.

The company employs a dedicated task force that acts as an in-house consulting team, offering operational support across diverse areas such as product supply, project management, sales and marketing, legal, and financial services. This operational assistance is complemented by efforts to drive digital transformation within its portfolio companies, ensuring that they can adapt to modern market demands effectively.

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The acquisition of Climate Ceiling Solutions by Private Assets SE & Co. KGaA is deemed a strategic and potentially lucrative investment. The focus on climate-efficient solutions aligns well with market trends, positioning Private Assets to capitalize on the growing demand for sustainable technologies in the commercial sector.

Moreover, the inherent market opportunities presented by regulatory shifts in Germany, favoring eco-friendly business practices, provide a favorable backdrop for this acquisition. Private Assets' expertise in managing and transforming underperforming businesses enhances the likelihood of rapid improvements and sustained profitability for the newly acquired division.

In conclusion, this deal signifies a robust opportunity not only for financial gains for Private Assets but also for making impactful contributions to sustainable building practices in Europe. As the market for climate solutions continues to expand, the timing of this acquisition could yield significant returns on investment for the firm.

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