Fan Specialist EBM-Papst Sold to US Conglomerate for Billions

EBM-Papst, a family-owned company specializing in fans, is set to be acquired by the publicly traded US corporation Madison Air in a deal valued at approximately 4.775 billion euros. The Mulfingen-based German firm, a significant player in ventilation and cooling technology, will transition to new ownership, though the transaction awaits regulatory approval.

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We will also benefit from better access to the US market.

Klaus Geißdörfer, CEO of EBM-Papst, expressed optimism about the acquisition, highlighting the potential for further development and market leadership expansion. He stated that Madison Air understands EBM-Papst's core strengths and needs, predicting that the partnership will provide improved access to the US market. Geißdörfer also noted that EBM-Papst's strong presence in Europe and Asia complements Madison Air's primarily US-focused operations, creating a mutually beneficial synergy.

The deal values the family business at 5.1 billion euros. EBM-Papst has recently seen significant growth in its data center cooling business, a sector poised for further expansion with the rise of artificial intelligence. Madison Air, which specializes in ventilation, filtration, and cooling systems, employs 9,000 people globally and reported revenues of $3.5 billion. The company's commitment to sustainable development over decades was cited by EBM-Papst's shareholder families as a key factor in choosing Madison Air as an ideal partner.

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Madison Air is almost not represented in Europe and Asia. EBM-Papst is well positioned here. That's why we complement each other well.

Following the acquisition, the current shareholder families of EBM-Papst will exit the company. Mulfingen is expected to remain the company's headquarters. EBM-Papst reported a six percent increase in revenue to approximately 2.24 billion euros in the last fiscal year ending March, with its core business growing by twelve percent. The company projected over ten percent revenue growth for the current fiscal year in its continuing operations. The transaction is expected to be finalized by the end of the year.

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We are convinced that together we can build on the already strong foundation.