ebm-papst becomes part of Madison Air – new strong owner for a long-term successful future

– The three shareholder families transfer ebm-papst to Madison Air, a leading US provider of air quality solutions
– Shareholders see Madison as an ideal partner for the group's further growth
– ebm-papst and Madison Air combine their strengths and complement each other technologically, geographically, and operationally to a high degree
– ebm-papst will benefit from Madison's innovative strength and strong presence in the USA
– Mulfingen remains the headquarters of ebm-papst and an important location for research, development, and production
– The new owner aims to strengthen ebm-papst in the long term and is ready to invest in the group and its employees

The ebm-papst Group ("ebm-papst"), a global leader in innovative ventilation solutions for air, refrigeration, and air conditioning technology, and the US corporation Madison Air ("Madison", NYSE: MAIR) announced today the acquisition of ebm-papst by Madison. The shareholder families of ebm-papst have signed an agreement with Madison Air, a global provider of air quality solutions, for the transfer of their shares. With Madison, ebm-papst gains a long-term oriented new owner with high innovation capacity and operational scaling experience to accelerate its growth. Conversely, Madison gains access to innovative air technology and highly attractive markets, especially in Europe, allowing it to further scale its business outside North America. As part of the transaction, ebm-papst is valued at €5.1 billion (Enterprise Value).

Madison Air is a leading provider of advanced air quality solutions for mission-critical applications. With its market-leading brands, the company serves a broad customer base across various end markets, including healthcare, industrial high-performance manufacturing, cleanrooms, data centers, and residential buildings. ebm-papst will complement this portfolio with its ventilation and motor technology, engineering expertise, and excellent reputation with customers, especially in Europe and Asia. Madison Air conducts the vast majority of its business in its home market of the USA and gains new market access in Europe through ebm-papst. Madison's operational expertise will support ebm-papst in further developing its manufacturing, supply chains, and commercial implementation, enabling it to continue its growth trajectory at an even faster pace. Additionally, ebm-papst will gain access to the US capital market through the partnership.

Shareholder families see Madison as an ideal partner for ebm-papst

"After careful consideration, we have jointly come to the conclusion that Madison Air is the ideal partner for ebm-papst to continue its growth trajectory in the long term. Madison has been committed to sustainable corporate development for decades. The company has an impressive presence in air and cooling technology, especially in the USA, and the prospects in data centers and AI infrastructure are enormous. With Madison Air, we have found a new owner who brings the necessary financial strength, a long-term entrepreneurial perspective, impressive strength especially in the US market, and its own technical solutions to further unlock the potential of ebm-papst in air, refrigeration, and climate technology. We are firmly convinced that employees and ebm-papst as a whole will benefit from this step. This is clearly decisive for us," explained Chloë McCracken, Jan Philippiak, and Ralf Sturm on behalf of the ebm-papst shareholder families.

Investments to strengthen ebm-papst and its employees

Jill Wyant, President and CEO of Madison Air, said: "As a long-standing customer of ebm-papst, we highly value the integrated air technology and the tailored engineering expertise of the company. Together with our strengths in mission-critical applications, our customer relationships, and our market access, we see clear potential to serve our customers even better and drive innovation forward. The competent team and engineering expertise of ebm-papst make the company a natural partner for Madison Air. We are convinced that we can build on the already strong foundation. We especially want to express our respect for the ebm-papst owner families, the company's long history, its employees, and its corporate culture. We want to continue this legacy through ongoing investments in the workforce, technology, and long-term growth."

Larry Gies, Chairman of the Board of Directors and founder of Madison Air, said: "We have been industry owners for over three decades and know what makes a truly good company. ebm-papst is definitely one of them. The culture and legacy built by the shareholder families in Mulfingen and beyond are among the group's greatest strengths, and we will preserve both. The demand for high-quality refrigeration technology is growing rapidly worldwide, and ebm-papst has the know-how and capacities that the market needs today. The two companies complement each other perfectly in their regional strengths: ebm-papst with its position in Europe and an attractive business in Asia, and us with our presence in North America. We look forward to growing together with the ebm-papst management team—for the benefit of employees and the group as a whole."

Madison Air aims to strengthen ebm-papst long-term with its more than 13,000 employees worldwide, including around 5,800 in Germany, and is prepared for additional investments. Mulfingen remains the group's headquarters and an important location for research, development, and production. The transaction does not affect existing employment obligations, collective agreements, or works council arrangements.

CEO Dr. Klaus Geißdörfer: We will gain better access to the US market with Madison

"ebm-papst is now stronger than ever," said Dr. Klaus Geißdörfer, CEO of ebm-papst. "Thanks to our strategic focus on growth, our innovative core business Air Technology is growing strongly, and our data center business is developing extraordinarily dynamically. However, the great potential for further development of the group has not yet been fully exploited, and with Madison, we have found a partner who understands exactly what makes ebm-papst unique and what we need to further expand our market leadership. We will also benefit from better access to the US market."

Focus on future topics pays off

The global expansion of digital infrastructures and advances in artificial intelligence create a rapidly increasing demand for highly efficient, scalable cooling solutions. ebm-papst combines physical products and digital platforms into intelligent integrated systems. To realize growth opportunities in these markets, sustainable investments, global scalability, and speed of implementation are required.

ebm-papst is already well aligned with the structural growth drivers: data centers, AI infrastructure, electrification, energy efficiency, and sustainable heating and cooling solutions. The AI-based platform NEXAIRA enables demand-driven control, predictive maintenance, and a significant reduction in energy consumption in data centers.

The shareholder families were supported in this transaction by Milbank LLP as legal advisors and Goldman Sachs Bank Europe SE as financial advisors. The transaction is subject to regulatory approvals and usual closing conditions. The completion of the transaction is expected by the end of 2026.