Madison Air Solutions to Acquire German Fan Maker ebm-papst for $5.4 Billion
U.S.-based Madison Air Solutions has agreed to acquire German fan and ventilation equipment maker ebm-papst in a $5.4 billion deal. The transaction will see ebm-papst’s three shareholder families transfer their stakes to Madison Air, part of billionaire Larry Gies’ Madison Industries. The acquisition is aimed at expanding Madison Air’s presence in Europe and strengthening its air-quality and ventilation technology portfolio.
The deal also gives ebm-papst an opportunity to expand in the rapidly growing U.S. data-centre market, where demand for advanced cooling systems is increasing as operators deploy more powerful chips and servers. Around one-third of ebm-papst’s sales come from equipment used in data centres operated by major hyperscalers. Madison Air will gain access to ebm-papst’s technology and customer base, particularly across Europe and Asia, while seeking to grow beyond its core North American market.
Founded in 1963, ebm-papst employs more than 13,000 people worldwide and supplies fans, motors and ventilation systems for air-conditioning and refrigeration applications. The company will retain its headquarters in Mulfingen, Germany, along with key research, development and production operations. Ebm-papst reported €2.24 billion ($2.6 billion) in turnover for the fiscal year ended in March, with CEO Klaus Geissdoerfer targeting growth in its core business to €3.4 billion by 2030. Madison Air shares fell about 5% following the announcement.
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