Aug 17 (Reuters) - Madison Air Solutions said on Monday it would acquire German fan maker ebm-papst in a deal valued at $5.4 billion, expanding its air quality and ventilation business.
The transaction will see ebm-papst's three shareholder families transfer their stakes to Madison Air, part of billionaire Larry Gies' Madison Industries, which specialises in indoor air quality systems and ventilation equipment for cleanrooms and data centres.
Madison Air is seeking to strengthen its position in Europe
and broaden its technology portfolio.
Ebm-papst said the deal would allow it to tap the booming U.S. data centre market, where demand for cooling systems is rising as operators deploy increasingly powerful chips and servers.
The deal "gives us access to the U.S. capital market, which can help us with strategic options," CEO Klaus Geissdoerfer told Reuters.
For Madison Air, the acquisition provides access to ebm-papst's technology and customer base, particularly in Europe and Asia, helping it expand beyond its core North American market.
Ebm-papst is a major supplier of fans, motors and ventilation systems used in air conditioning and refrigeration.
The company said it would retain its headquarters in Mulfingen, southern Germany, as well as key research, development and production operations.
Ebm-papst generated turnover of €2.24 billion ($2.6 billion) in the fiscal year ended in March and Geissdoerfer aims to grow the core business to €3.4 billion by 2030.
($1 = 0.8624 euros)
(Reporting by Apratim Sarkar and Alexander Huebner. Writing by Friederike Heine. Editing by Linda Pasquini, Ludwig Burger and Mark Potter)
