Madison Air acquires German fan maker EBM Papst for 5 billion euros
US conglomerate Madison Air has purchased EBM Papst for 5 billion euros, adding $3 billion in revenue to its portfolio. The deal strengthens Madison Air’s position in ventilation technology for data centers and hospitals.
Madison Air, a US conglomerate founded by Larry Gies, has acquired German fan manufacturer EBM Papst for 5 billion euros. The acquisition adds $3 billion in revenue and $300 million in profit to Madison Air, which currently reports $3 billion in revenue and $600 million in operating profit. The company is valued at $12 billion, with Gies owning 60% of the shares and over 90% of the voting rights. Gies, who began his career at a Deloitte predecessor and was fired for criticizing a client, built Madison Air by maxing out credit cards and borrowing $50,000. The company’s core business involves ventilation technology for data centers and hospitals, which grew at 5% annually from 2007 to 2020 and 8% since 2020. The acquisition provides strategic synergy in fans for ventilation solutions and expands Madison Air’s access to the European market. Gies invested $600 million in his own shares in August at a price higher than the current level. Madison Air maintains that it has a core business that grows without acquisitions.