Information on Dantherm HVAC and Telecom EMEA

Dantherm HVAC and Telecom EMEA is a prominent provider of environmental control solutions, including ventilation, dehumidification, and climate management products. The company, headquartered in Skive, Denmark, offers a robust product portfolio catering to the HVAC market and specializes in mobile heating and cooling systems. Its Telecom division stands out as a leading supplier, providing essential climate control solutions for radio base stations across Europe.

In 2015, Dantherm generated approximately 310 million DKK in revenues and employed around 240 professionals across its operations in Denmark, Norway, Sweden, the UK, and Germany. The company’s strong market position is enhanced by its high technological competence and a state-of-the-art manufacturing facility located in Denmark, positioning it well for future growth.

Industry Overview in the Nordic HVAC Market

The HVAC (Heating, Ventilation, and Air Conditioning) industry in the Nordic region has been witnessing a positive development, driven by increasing demand for energy-efficient solutions and sustainable practices. The growing emphasis on reducing carbon footprints and climate change concerns has compelled businesses and consumers alike to invest in advanced HVAC technologies that enhance energy efficiency.

In the Nordic countries, strict environmental regulations and standards have paved the way for innovations in HVAC systems. This trend has contributed to a surge in demand for integrated solutions that not only fulfill conventional heating and cooling needs but also offer advanced controls and monitoring capabilities. Major driving factors for market growth include urbanization, regulatory pressures, and the push towards renewables.

The European HVAC market, particularly in the Nordic region, is expected to continue on an upward trajectory in the coming years. Businesses in this space are increasingly focusing on adapting their product offerings to meet the dynamic needs of consumers and regulatory requirements. This presents substantial opportunities for companies like Dantherm that are positioned to leverage technological advancements in their operations.

Rationale Behind the Deal

The acquisition by Procuritas Capital Investors V LP represents a strategic investment in Dantherm HVAC and Telecom EMEA, aimed at capitalizing on the growing market potential within the European HVAC sector. As noted by Hans Wikse, Managing Partner at Procuritas Partners AB, the acquisition is an opportunity to build on Dantherm's recognized quality and technological expertise while facilitating further growth.

With a revitalized focus under new ownership, the management team at Dantherm is enthusiastic about driving the company's strategic plan. The belief that the HVAC market in Europe will continue to develop favorably underpins the rationale for this transaction, as it provides a solid foundation for expanding Dantherm's reach and market impact.

Information About the Investor

Procuritas Capital Investors V, LP (“PCI V”) is a private equity fund dedicated to investing in mid-sized companies across the Nordic Region. With a focus on firms generating sales between €20-150 million, PCI V is well-capitalized and actively seeking attractive acquisition opportunities. The fund benefits from the advisory expertise of Procuritas Partners AB and Procuritas Partners GmbH.

Procuritas Partners AB, established in 1986, has a long-standing history and expertise in the private equity arena, particularly in structuring and financing management buyouts (MBOs). The firm is recognized as a pioneer in the MBO concept within the Nordic markets, leveraging its network and experience to support the growth of its portfolio companies effectively.

View of Dealert

This acquisition represents a well-timed investment in a growing segment of the HVAC market. Dantherm's established presence and expertise in ventilation and climate control for telecommunications provide a strong platform for growth, especially against the backdrop of increasing sustainability and efficiency demands from consumers and regulatory bodies.

Moreover, the strategic focus of the new management team, coupled with the financial backing from PCI V, positions Dantherm well to capitalize on emerging market trends. The long-term growth prospects for the European HVAC industry are promising, and Dantherm's capabilities align well with these trends.

However, potential risks associated with market fluctuations and evolving regulatory conditions require close monitoring. Overall, the deal exemplifies a prudent acquisition in light of Dantherm's robust market position and the anticipated growth in HVAC demand across Europe, leading to a favorable outlook for future returns on investment.

View Original Article